7 Best Crypto Tax Software in 2022: A Comprehensive Review
Cryptocurrency taxation is a complex and ever-evolving field. In this post, we will review the best crypto tax software available in 2022. These programs are essential for taxpayers who want to ensure they are filing their taxes correctly and taking advantage of all the deductions and credits they are eligible for. We’ll take a look at the features offered by each program and help you decide which one is best for you.
As of March 2022, there is no official consensus on how to tax cryptocurrency and non-fungible tokens (NFTs). This leaves traders in a tricky situation where they may not know what taxes apply or must pay more than expected because the law has yet been settled.
Your best defense against audits and taxmen is to use a DeFi-enabled crypto trading software. We’ve rounded up some of the top options for you here!
What is the Best Crypto Tax Software?
1.Koinly
Koinly is probably one of the best crypto tax software when it comes to Crypto Tax Software. It is a web and mobile application that helps you track your cryptocurrency portfolios and calculate your taxes. It integrates with over 20 exchanges including Coinbase, Binance, and Kraken. You can also connect wallets like MetaMask, Trust Wallet, and Ledger Nano S.
Koinly offers both a free trial and premium version. The free plan allows you to record up to 10,000 transactions. You won’t be able to export your cryptocurrency tax reports for free, however.
Features:
- Well-known software
- Automated data importing
- Tools for top-notch error reconciliation
- Connects you with tax specialists
- Support all major crypto exchanges and wallets
- Great Customer Support
Price:
- Free: $0 per year
- Newbie: $49 per tax year (up to 100 transactions)
- Hodler: $99 per tax year (up to 1000 transactions)
- Trader: $179 per tax year (up to 3000 transactions)
- Pro: $279 per tax year (up to 10,000 transactions)
Integrations:
- API
- CSV files
MKT’s Take
If you want a gold standard for your crypto tax preparation software, Koinly is the way to go.
2.Coinledger (formally known CrytpoTrader.tax)
CoinLedger is a web-based crypto tax software that helps you calculate your cryptocurrency taxes. this accounting software is often referred as a great alternative to Koinly. the software integrates with popular exchanges like Coinbase, Binance, and Kraken. You can also connect wallets like MetaMask, Trust Wallet, and Ledger Nano S.
You may import your trades from practically any crypto exchange with this crypto tax software. It also includes extra features focused on crypto income, making it a popular option among many cryptocurrency users who also operate in the bitcoin and greater cryptocurrency sector.
Features:
- Offers a free trial and paid plans based on reporting capability for tax filing.
- 100% money back guarantee
- Integrated with TurboTax
- Can automate connections to exchanges
Price:
- Free : $0 per year. You can import all transaction history. But you will not be able to export any report.
- Hobbyist: $49 per year (Up to 100 transactions)
- Day Trader: $99 per year. (Up to 1500 transactions)
- High Volume: 199 per year (up to 5000 transactions)
- Unlimited $299 per year (Unlimited transactions)
Integrations:
- API
- CSV files
MKT’s Take
If you’re searching for a reliable alternative to koinly. CoinLedger might be the way to go. For a cheaper price, you may do more transactions with plans.
3.TaxBit
TaxBit is a web and mobile application that helps you calculate your cryptocurrency taxes. It integrates with popular exchanges like Coinbase, Binance, and Kraken. You can also connect wallets like MetaMask, Trust Wallet, and Ledger Nano S.
TaxBit offers both a free and premium version. The biggest feature of their free version is unlimited transaction records, and you can create tax filing form reports as long as it is on the current year.
Features:
- Offers a free trial and paid plans based on tax report capability.
- Tools for top-notch error reconciliation
- Connects you with tax specialists
- Support all major crypto exchanges and wallets
Price:
- Free: $0 per year (unlimited transactions)
- Basic: $50 per year (unlimited transactions + historical form and data)
- Plus: $175 per year (unlimited transactions + Concierge Support for CSV Uploads)
- Pro $500 per year (including CPA review and audit IRS review)
Integrations:
Yes
MKT’s Take
TaxBit is a great option if you are looking for a comprehensive solution for your cryptocurrency taxes. It offers a free version which is perfect for those just getting started. As long as it is in the current year, you can record unlimited crypto transactions and create a tax report. That’s pretty generous. The paid plans are also very affordable and offer unlimited crypto transactions. If you can manage and keep record off software, this might be the best crypto tax software for you.
MKT’s Take
TaxBit is a great option if you are looking for a comprehensive solution for your cryptocurrency taxes. It offers a free version which is perfect for those just getting started. As long as it is in the current year, you can record unlimited crypto transactions and create a tax report. That’s pretty generous. The paid plans are also very affordable and offer unlimited crypto transactions. If you can manage and keep record off software, this might be the best crypto tax software for you.
4.Accointing
The Switzerland-based top crypto tax software solution, Accointing.com is a one of the most user friendly and intuitive platforms to manage your taxes with seamless integrations that enable you straightforwardly import all transactions from various sources such as Blocktrail or Coinbase into an easy format for later filing!
Features:
- Free trial
- Intuitive dashboard
- More than 300 crypto wallets and exchanges
- Tax-loss harvesting tool
Price:
- Free: $0 per year (up to 25 transactions)
- Hobbyist: $79 per year (Up to 500 Transactions)
- Trader: $199 per year (Up to 5000 Transactions)
- Pro $299 per year( 50,000 Transactions)
Integrations:
Yes
MKT’s Take
It is a good alternative to other software on this list. The free plan is limited.
What is Cyript Tax Sofware?
Cryptocurrency tax software is a tool that helps you calculate your taxes on your cryptocurrency investments. It typically integrates with popular exchanges and wallets, and can automate some of the process of keeping track of your transactions. Many crypto tax software solutions also offer extra features focused on crypto income, making them a popular option among many cryptocurrency users who also operate businesses or otherwise derive income from their digital assets.
What are the benefits of using cryptocurrency tax software?
There are many benefits to using crypto tax software, but some of the most popular include:
– Automation: Crypto tax software can automate much of the process of tracking your transactions and calculating your taxes, which can save you a significant amount of time.
– Ease of use: Many crypto tax software solutions are designed to be user-friendly, with an intuitive interface that makes it easy to track your transactions and calculate your taxes.
– Support: Some crypto tax software solutions offer extra features like support from tax professionals, which can be a valuable resource if you have questions about your taxes or are audited by the IRS.
How is Cryptocurrency Taxed?
The taxation of cryptocurrency is a complex issue, and it varies from country to country. In the United States, for example, cryptocurrency is treated as property for tax purposes, which means that capital gains taxes apply to any profits you make from selling or trading it.
This can be a significant burden for traders who frequently buy and sell cryptocurrency, as they may be liable for capital gains taxes on every transaction. Crypto tax software can help by automatically tracking your transactions and calculating your gains or losses, which can make it easier to file your taxes and avoid mistakes that could trigger an audit.
The best crypto tax software depends on your needs
Although the federal government has provided guidance on how cryptocurrency should be handled, the rules are not completely clear.
Although the government has offered instructions on how cryptocurrency should be regulated, these standards are not entirely definitive. On March 9, 2022, President Biden signed an Executive Order instructing officials to assess the government’s future role in regulating the industry.
IRS Notice 2014-21, the most up-to-date definitive guidance on crypto taxation, classifies cryptocurrency as a digital asset that is U.S. property and valued in US dollars on the date you sell it.
Conclusion
As the regulations for cryptocurrency are still being ironed out, it can be difficult to determine which crypto tax software is best for you. The best solution will vary depending on your needs and how complex your taxes are. However, some of the best options include solutions like Accointing, which offers automation, ease of use, and support from tax professionals. best crypto tax software will offer features that make it easy for users to calculate their taxes and avoid mistakes. The software should also be updated regularly to ensure compliance with the latest regulations.
Crypto tax software can be a valuable tool for cryptocurrency investors and traders, but it is important to choose the right solution for your needs. With best crypto tax software will offer features that make it easy for users to calculate their taxes and avoid mistakes. The software should also be updated regularly to ensure that it is compliant with the latest regulations.
Disclaimer
The information contained in this post is for informational purposes only and should not be construed as legal or financial advice. You should consult with a professional accountant or financial advisor regarding your specific situation.
Photo by Mariia Shalabaieva on Unsplash
