Sep 3, 2020
14 Best FREE Crypto Tax Software - Reviews (June 2022)
Top 5 Bitcoin Tax Calculator, solutions, and tools
Whether you’re new to crypto or if you have been in the space for a while, you’ll need to pay taxes. As regulations are kicking in it’s very important that you calculate crypto taxes properly.
If you are not sure how to calculate crypto taxes, read our guide where we answer common cryptocurrency tax questions. Normally a trader goes through 3 stages when trading cryptocurrencies.
What’s the best crypto tax software for my money?
We will be comparing the multiple crypto tax calculator today. However, if you are in hurry, here are our top 3 choices.
Crypto tax software for beginners and traders
If you’re new to the crypto space and you don’t want to be leveraging in 3–5 different software to manage your crypto portfolio, choose Accointing.
It focuses on the user. It provides educational content. And it has a crypto tracker app as well as a cryptocurrency tax calculator that delivers specific outputs per country for the US, UK, Germany, Austria, Switzerland, or any other country that uses FIFO or LIFO as a tax method.
It offers great customer support, and it’s one of the most affordable platforms out there.
Top Crypto tax software for CPAs and Startups
If you’re looking for a more complex platform with more statistics on the general cryptocurrency landscape, I would recommend Cointracking.
It has a robust infrastructure in terms of data although it might not be for your novice trader. They also offer a directory of crypto CPAs around the world, but don’t have any official partnerships with any of them.
Best Cryptocurrency tax software with professional CPA support
Need help with Bitcoin tax? If you’re just looking for a platform to get your taxes done with the help of professionals, but with a considerably steeper price than the competitors, we recommend TokenTax.
It’s mainly focused on English-speaking countries so you won’t have any trouble if you come from the US, Canada, or Australia. They handle several tax methods and you can acquire a tax package that includes a CPA…for a price.
Borrow fiat for crypto and save money while filing taxes
Comparing Different Crypto Tax Software
Here is a comparison of different cryptocurrency tax calculators evaluated based on different variables.
The variables are broken down into subcategories in order to provide a more unbiased approach. Each subcategory was individually tested on each platform using the best of our knowledge.
Data Import Features
We have used multiple data import features as a variable. The following are these variables.
- Historical Data Import: all data from all different data sources consolidated into one single source of truth for transactions, properly aligned to provide a structured output
- Automated Exchanges Import: feature to automate that importing via API or Oauth, leveraging on Exchanges and Wallets connections to accelerate the connection between the exchange and a third party
- Automated Wallet Connection: feature to automate the wallet connection via Xpub or leveraging on an API connection to make the connection to a third party faster
- Data Export: feature to export all transactions inside of the platform to manipulate them accordingly via CSV or Excel
- ICO/OTC Import: feature to import ICO/OTC transactions properly into the crypto tracker app.
- Guided Data Import: step by step guide on how to import your transactions including video tutorials and different importing format (API, CSV, Direct Connect, etc)
- Multiple Accounts: feature to handle several accounts via one account (CPA approach)
- Ease of Changing Imported Data: the ability to easily edit, delete, rearrange data from wallets, exchanges, or imported files in less than 2–3 clicks
- Manual Import: ability to easily input manual transactions into the platform by providing the proper fields and flexibility to adapt to the different tokens conditions
- Option to Edit Data: feature to edit individual transactions
- Classifications: a variety of classifications aligned to accounting principles in order to provide the best tax output possible
How data import in crypto tax softwares is useful?
Importing data into a platform is the first step for any crypto trader trying to understand their transactions any further.
Without the ease of use of importing data into a platform, any platform becomes useless, or cumbersome so instead of offering a solution, it causes a new pain point.
Why you need data import?
If you’re extremely impatient or don’t have a lot of time if you have a few or thousands of transactions. A tax cryptocurrency software with a great onboarding experience will not only save you a lot of time.
However, if you’re working with a CPA for crypto tax purposes, it will save tons of money in terms of hourly fees by importing all your information faster and effortlessly with the proper tool.
Based on our analysis we find the best data importing features in the following crypto tax software
Defi & Tax abilities
For the following chart, these factors were taken into consideration: data compilation, formatting into crypto tax reports template, tracking the current year’s gains and losses, and capital gains and loss calculation.
Accointing.com and Koinly offer the best Defi ability among all platforms (capability of classifying/recognizing complex Defi transactions properly), while the most complete software in terms of tax capabilities is Cointracking due to the various cost basis methods managed and the number of reports available.
Tracking & Management Features
We have used the tracking and management features mentioned below as a variable for our analysis.
- Coin Analysis Chart: a feature that translates data to information about your portfolio via an app or a dashboard, providing insights into your crypto portfolio’s performance.
- Trade Metrics: linear graphs, bearish or bullish sentiment, candlestick charts or any other feature that helps crypto traders make better decisions based on trends and analytics
- Long / Short-term Calculation: calculation of long term and short term holdings in order to understand tax repercussions, providing the allocation and amount of the cryptocurrency per term.
- Cash Flow Analysis: PnL of portfolio or per token, showcasing crypto gains and losses in different time periods. It is very important to pay tax on crypto gains.
- Full Data Set Analysis: a feature that allows the user to review the entire transaction history with its classifications, providing buy/sell date, amount, source, cost basis, and classification per each individual transaction in a compiled format.
- Cost Basis: proper cost basis to crypto taxes tax returns according to each tax method.
- Trading Analysis: smart alerts and insights based on portfolio fluctuations (positive or negative) on customized and specific time periods
- Certified Tracking System: SOC or any other certification of that sort based on the evaluation or auditing of the current way of handling transactions from an accounting perspective in order to provide the most accurate source of information.
How tracking & management is useful in crypto tax software?
Crypto tax software is not enough. If you’re not an accountant, understanding your entire portfolio transactions based on a glorified spreadsheet won’t be enough. You need a platform that allows you to understand your entire portfolio, analyze and provide you with real insights in order to manage your portfolio. Taxes are seasonal so it becomes extremely relevant at specific periods of time. A platform that can do everything from anywhere is where the real value is.
Why do you need tracking and management?
With high volatility and with over 6,000 currencies and 300 exchanges, tracking your portfolio’s performance, it becomes extremely difficult, tedious, and time-consuming. Not only that. When looking for crypto tax software, the majority only offer a solution during a specific point in time where you might have already made many wrong decisions without having full control of your portfolio and only reacting. A software that can provide you with both a tax software and a tracking platform combines the sexiness of trading analytics with the seriousness of taxes, giving you the perfect platform for any crypto trader.
Best tracking and management features is provided by the following crypto tax softwares
Price Comparision
Accointing.com and CoinTracking offer one of the best packages in terms of value for your money (taking into consideration pricing, (and transactions). Even though CoinTracking supports up to 20k transactions, their platform is hard to use, even for advanced crypto users, so this is time-consuming in the long term if you are importing several wallets. On the other hand, TaxBit plans include unlimited transactions. Their software functionality is restricted to ETH mainly, so if you are an active Defi user, it won’t suit your needs. Moving into Koinly and CoinTracking, they offer a free trial, and their pricing per tax year can get higher if you are dealing with a huge amount of transactions.
Tax Report
We have used the following tax reporting features as a variable.
- Relevant Tax Documents: provides the right information for taxpayers based on the requirements of their country's jurisdiction based on tax methodologies and laws
- Multiple Countries: assistance in different languages for different countries with a crypto tax law expert in each country supported
- Clear And Guided Report Creation: step by step guide to import, review, classify, define and exporting a crypto tax report in the most organized way possible
- Calculation Of Crypto Income: using the right cost basis and the proper methodologies, determining the proper way of evaluating the different transactions to identify income
- Export To Different Tools: feature to add your cryptocurrency tax reporting to several tax platforms based on your country's jurisdiction. For example, TurboTax tax calculator and Tax Act for the US or Smart Steuer for Germany and Austria.
- Transaction Limit For Tax Reports: allowable transaction limit per tax report package or cost per transaction to file a tax report.
How tax report features are useful?
If you’re looking to generate a tax report, it’s important that is properly handled by a tool that not only provides the right output based on the right information but also that connects to the relevant tax platforms in order to file all your tax returns in one place.
Having a tax expert within the platform is a nice bonus as long as it is a certified crypto tax lawyer with a good understanding of the crypto space.
Why you need Tax reports?
Whether you have just started buying and trading crypto, and you’re realizing just now that cryptocurrencies generate taxable events. If you have been a crypto trader for quite some time already and are frustrated with the existing crypto software. it is important for you to know that there are software that can provide you with a solution to generate a crypto tax report.
Knowing your countries tax method and tracing every single transaction on an excel sheet is a thing on the past. Save thousands of dollars and time by using a tool that will help you do all of that way better than you (no offense).
Best crypto tax software with tax reports features are:
In this spider web diagram, you can visualize how each tool excels in the different categories. The closer the line is to the category (Data import, tracking, and management features, etc), the better it is in that field.
If you are looking for free crypto tax software or an Open-source Cryptocurrency tax calculator then checkout Rotki.
Frequently Asked Questions
What’s the best crypto tax tool for my money?
Accointing.com offers the best deal in terms of value for your money, this includes the combination of cost, features, sustainability, and ease of use to meet customer needs. The most common package, which is 199$/per tax year, supports up to 5k transactions. Due to its ease of use and the fact that all plans include the tax-loss harvesting feature, and you can generate as many reports as you want, the best choice you can make is to use their tool.
What is the Best tax software for Beginners?
These focus on the user, their UI & UX are incredibly intuitive, and the process of importing data and generating reports is inherent for most of them.
What to look for in a crypto tax solution?
You need to look out for: Automated Data Input, Flexibility, Pricing, Reliability, Features, Tax Reports Quality, Customer Support, and Ease of Use. If you’re new to the crypto space, don’t juggle between two tools to manage your crypto portfolio and taxes. Seek the one that focuses on the user, provides educational content, and offers a crypto tracker app and a crypto tax tool. Ensure that it delivers specific outputs per country and excellent customer support.
Does Crypto tax software work? If You use a Crypto Tax Software, do you still need a Tax Consultant?
Crypto tax software does work; they aim to automate importing transactions, find all market prices at the time of your trades, and calculate your gains and cost basis. While using these types of software, it is not necessary to have a tax consultant; in fact, you can file taxes alone, just making sure you generate a report accepted in your tax jurisdiction.
How do I know If I need to pay taxes on my crypto?
When you execute a trade/sell on crypto, you have to pay tax on the difference between the selling price and the price you bought it for (Capital Gains Tax), and it has to be paid in several countries, such as the UK, USA, Canada, Germany, among others. It is like “reporting your capital loss or gain over your trades.”
It is necessary to pay tax on Cryptocurrency Capital Gains?
Yes, based on your jurisdiction it may or may be necessary to pay taxes on your cryptocurrency gains.
How to file crypto taxes?
Use any of the cryptocurrency tax calculators above, once completed above software is also linked with CPAs who can help you file your crypto taxes.
How to pay tax on Bitcoin? How to report Bitcoin on taxes? how to report cryptocurrency on taxes?
You need to use any of the cryptocurrency tax software mentioned above and calculate your tax liability and pay it with your CPA’s help.
How are Cryptocurrencies taxed?
Crypto taxes differs based on jurisdictions, there you need to check tax for your country, however, we have created a small guide to answer your cryptocurrency tax questions.
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