The Best Crypto Tax Software in 2023

By  Beluga Research October 12, 2023

As the saying goes, "the only sure things are death and taxes", right? Cryptocurrencies will certainly not escape the reach of tax obligation. However, defining scenarios that trigger a taxable event has been a work in progress with the emergence of crypto, with the government playing catch up. Read More

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ZenLedger

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Top Pick

ZenLedger

Pricing

$49 for 100 transactions, $149 for 5,000 transaction, $399 for 15,000+ transactions & $999 for unlimited transactions

Countries Supported

150+ countries

Customer Feedback

3.5 stars on TrustPilot

CoinLedger

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CoinLedger

Pricing

$49 for 100 transactions, $99 for 1,000 transaction & $199 for 3,000+ transactions

Countries Supported

14 including USA, Australia and Canada

Customer Feedback

4.8 star rating on TrustPilot

Koinly

Koinly Logo

Koinly

Pricing

$49 for 100 transactions, $99 for 1,000 transaction & $179 for 3,000+ transactions

Countries Supported

30

Customer Feedback

4.8 stars on TrustPilot

TaxBit

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TaxBit

Pricing

$0 for unlimited transactions

Countries Supported

USA

Customer Feedback

3.8 stars on TrustPilot

CoinTracker

CoinTracker Logo

CoinTracker

Pricing

$49 for 100 transactions, $99 for 1,000 transaction & $199 for 3,000+ transactions

Countries Supported

USA, Canada, UK, and Australia

Customer Feedback

3.2 stars on TrustPilot

Crypto Tax

Crypto Tax Logo

Crypto Tax

Pricing

$29 for 50 transactions, $149 for 500 transactions and $149 for 2,000 transactions

Countries Supported

USA, UK, and Canada

Customer Feedback

4.2 stars on TrustPilot

CoinPanda

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CoinPanda

Pricing

$49 for 100 transactions, $99 for 1,500 transaction & $199 for 5,000+ transactions

Countries Supported

65 countries

Customer Feedback

4.7 stars on TrustPilot

CoinTracking

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CoinTracking

Pricing

$99 for 3,500 transactions, $199 for 20,000 transactions & $299 for unlimited transactions

Countries Supported

Global

Customer Feedback

3.3 stars on TrustPilot

TokenTax

TokenTax Logo

TokenTax

Pricing

$65 for basic plan, $199 for premium plan & 2,499 for professional plan

Countries Supported

USA, Canada, UK & Australia

Customer Feedback

4.6 stars on TrustPilot

BitcoinTaxes

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BitcoinTaxes

Pricing

$29.95 for 100 transactions, $49.95 for 1,000 transactions & $99.95 for 5,000 transactions

Countries Supported

USA, Canada, UK & Australia

Customer Feedback

4.1 stars on TrustPilot

Accointing

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Accointing

Pricing

$49 for 100 transactions, $149 for 2,500 transactions, $329 for 10,000 transactions & $499 for unlimited plan

Countries Supported

40+ countries

Customer Feedback

3.5 stars on TrustPilot

Awaken

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Awaken

Pricing

$75 for 300 transactions, $150 for 1,000 transactions, $300 for 3,000 transactions & $400 for 5,000 transactions

Countries Supported

USA & Canada

Customer Feedback

4.1 stars on TrustPilot

Top Beluga Pick

ZenLedger is Beluga's pick for the best overall crypto tax software. Not only does ZenLedger support most countries and cryptocurrencies, it also supports 400+ crypto exchanges, 100+ DeFi protocols and more than 10 NFT platforms. Better yet, it even integrates with TurboTax and offers a tax loss harvesting tool, which tells users how many unrealized capital losses they have for each token type. While it is not the cheapest crypto tax software option for individuals ($49-$999), it is user friendly, accurate and offers phone, email and chat support for its customers.

For those who outsource taxes, ZenLedger also offers a CPA access feature, which allows users to grant access to their tax professional to view and edit their account at no additional cost. Additionally, for customers who don't have a preferred tax professional and don't want to handle their crypto taxes themselves, ZenLedger offers tax professional plans . The plans are priced at $3,500 per tax year or $6,500 per two tax years. With these plans a crypto tax professional completes all or part of a customer's tax return to ensure accuracy, save time and reduce stress for customers.

The Beluga Pick For Americans on a Budget

TaxBit is Beluga's pick for the most affordable and reliable crypto tax software for Americans on a budget. TaxBit is a reputable company that was chosen by the IRS in 2021 as its partner to provide data analysis and tax calculation support for taxpayers with cryptocurrency. The service is free for individuals and offers unlimited transactions, email support and easy exporting functionality to TurboTax or other traditional tax software. TaxBit supports over 500 exchanges and allows customers to integrate their crypto data for free across various exchanges, wallets, DeFi protocols and NFT marketplaces.

The Beluga Pick For Budget-Conscious Crypto Holders Outside the US

Koinly is Beluga's top pick for budget-conscious crypto holders beyond the United States. It makes the pick as the best free international option for crypto holders because it calculates taxes for more than 100 countries, supports more than 6,000 cryptocurrencies, more than 350 exchanges and 50 wallets. (While Koinly does offer support for US taxpayers as well, its free plan includes 10,000 transactions whereas TaxBit is a completely free service for American individuals and offers unlimited transactions).

The Koinlyfree plan does not include cost analysis. But it does offer access to many of the same features available in the paid plans including unlimited wallets and exchange accounts, portfolio tracking, capital gains preview, DeFi, margin trades and futures. The primary difference between the free and paid plans is that paid plans grant customers access to other tax report formats such as 8949, Schedule D and various European tax forms. Overall the free plan is fairly comprehensive. Upgrading to the first paid tier will only cost a customer $49, Koinly's highly ranked, reliable and affordable crypto tax software option for international crypto holders edges out the others.

Questions & Answers

Q. Will crypto exchanges report cryptocurrency trades to the IRS?

A. Exchanges must report specific transactions to the IRS due to legal requirements. These transactions typically involve U.S. dollars or other fiat currencies. However, individual trades may not be reported directly. This is why it is crucial and incumbent upon the user to keep track of all cryptocurrency transactions.

Q. What happens if crypto holders don't pay taxes?

A. Failing to pay taxes, including cryptocurrency taxes, can have serious consequences. The IRS may impose penalties and interest on the unpaid amount, and in some cases, the IRS may pursue legal action. It's crucial for crypto holders to fulfill tax obligations and seek professional advice if facing difficulties.

Q. What is tax loss harvesting?

A. Tax loss harvesting is a tactic to counterbalance capital gains. This is achieved by selling investments at a loss. In the case of cryptocurrencies, it requires selling those that have decreased in value since being acquired. The idea is to offset the profits gained from other successful trades. Cryptocurrency investors frequently use this technique, as it can help lower overall tax liability.

The strategy behind many tax loss harvesters is to buy their crypto back immediately after selling it, as crypto is currently exempt from the wash sales rules set forth by the IRS. These rules, which apply only to securities like stocks and bonds, state that taxpayers must wait 30 days to repurchase the security if they wish to claim it as a tax loss. Because the IRS deems cryptocurrency as property rather than a security, crypto holders can, without penalty, sell their crypto at a loss, claim a tax deduction and buy the same crypto back immediately after selling. This strategy is often used by crypto holders to purchase at low prices. However, it's important not to abuse this strategy and to speak to a tax adviser before making any such moves.

Q. How can crypto tax software help crypto investors?

A. Calculating and reporting cryptocurrency taxes becomes easier with crypto tax software. These tools integrate with popular exchanges, wallets and trading platforms. Cryptocurrency tax software imports transaction data automatically and performs complex calculations like cost basis and capital gains. This software generates precise tax reports that save time. It also ensures compliance with tax regulations.

Q. Which factors should be considered when choosing crypto tax software?

A. When choosing crypto tax software, consider its accuracy and reliability. Look for automatic data importing and support for many exchanges and wallets. Test the software's user interface and evaluate the company's pricing plans and what type of customer support they offer. Cryptocurrency investors should also check the software's functionality and features to confirm if it meets specific tax needs.

Q. Are crypto tax software solutions compatible with all cryptocurrencies?

A. Most reputable crypto tax software supports many cryptocurrencies. However, investors should double check a software's list of supported coins before purchasing any tax software. Some software may have limitations or require manual entry for less common or newly launched cryptocurrencies. It's essential to verify this information.

Q. Can investors with a high volume of transactions still use crypto tax software?

A. Investors with a high volume of transactions are particularly suited to using an appropriate crypto tax software due the complexity and volume of the sum of their activities. Look for tax software made for high volume and varied cryptocurrency engagement as well as tools that support a variety of cryptocurrency activities, such as staking, receiving airdrops, tracking trades and the like. Research crypto tax software providers for accuracy, reliability and reputation. Look for automatic data importing, comprehensive tax reporting and support for many exchanges and wallets. Test the software's user interface, customer support, pricing - pretty much all the features required for specific, and in this case, high transaction volume tax needs.

Q. Are crypto tax software tools secure?

A. Reputable crypto tax software providers focus on security to protect user data. This software uses encryption to safeguard sensitive information. It's important to choose a trusted software provider and follow best practices.