Tax is a three-letter word that stands for one of the major causes of anxiety and stress, much like the closely related acronym IRS. It is a highly controversial topic in the cryptoworld, as many are drawn to cryptocurrencies particularly because they are supposed to be decentralized and free from all the hassle associated with government-managed fiat currencies. However, one should not be fooled – every crypto transaction is taxable. With the volatility of the cryptomarket, doing your taxes can be an even more tedious task if your transactions involve virtual currencies. On the upside, modern currencies come with modern tax solutions. We are here to introduce you to the best crypto tax software around.
It is hard not to dread tax season, but with helpful tools doing most of the tedious work for you, the season can at least go by panic-free. Without further ado, we present you our curated list of the best crypto tax software on the market.
- Extensive and informative analyses charts
- 24 crypto exchanges supported
- Historical and current data on 4533+ coins
- High personal data safety & security
- Comprehensive, easy-to-use interface
- Support for LIFO, FIFO, Average Costing
- BitGive charitable donations highlights
- Several professionally-oriented packages
- Free package + affordable premium
- Reports on capital gains, mining, spending
- Support for popular exchanges/wallets
- Export TaxACT and TurboTax PDF reports
- Price History, Matrix, Schedule D reports
- Single transaction history for wallets
- Change addresses included in lists
- Full anonymity + no limits with local use
- Calculates profit, loss, and various taxes
- Various data import methods available
- Supports many fiat & crypto currencies
- Stores data exclusively on your device
Choosing The Best Crypto Tax Software
Different users may have different expectations, but essentially, what nearly everyone expects from crypto tax software is for it to be a simple yet powerful tool that can make life easier. With that in mind, we made it our goal to identify the most efficient, easy-to-use crypto tax software; in other words, software that does not require too much manual editing and generates accurate and usable reports.
When choosing the best crypto tax software, we look for software that allows for easy creation of a variety of reports, including those particularly designed to facilitate the process of filling out specific tax forms. We also find it important to have the possibility to create custom reports for a range of purposes and choose between multiple cost basis methods.
Another crucial aspect of this sort of service is compatibility. We pay special attention to the software’s suitability for the needs of different users, including but not limited to compatibility with all the major operating systems and devices. We make sure that the software in question supports the widest range of wallets and cryptocurrencies, preferably simplifying the process by offering the possibility to generate a single transaction history for multiple wallets. Basically, what we expect from crypto tax software is for it to be able to provide precise reports for nearly all wallets and currencies while presenting them in a form that is easy to handle and understand.
No one hates limits more than we do, but unfortunately, most kinds of crypto tax software, especially the free ones, come with certain limitations with respect to the number of addresses and transactions per address. This can be a big problem for many users, which is why we only feature services that come with limits that are reasonable and acceptable to most users, as well as those that offer unlimited service with affordable subscriptions or local use.
It may come as a surprise, but many kinds of crypto tax software explicitly come with a warning that they should not be used for tax purposes. More often than not, they are not certified by the CPA and their sole purpose is to do all the necessary calculations and lend you a helping hand in the process of preparing taxes. Although we work hard on finding the best software that can genuinely be of use to you and do nearly all the work for you, we have to stress that crypto tax software should not be regarded as a magic wand, but a valuable assistant. No matter which one you choose, in the end, it is your responsibility to fill out everything and deliver it to the IRS. Although this may sound disappointing to some, we still believe that is important for you to be in control of your taxes.
We consider it our responsibility to make sure your security and privacy are preserved when using the crypto tax software we recommend. We never feature software that does not take adequate measures to prevent your data from falling into the hands of untrusted third parties. That being said, we believe that the personal information used for generating transaction histories and reports is too sensitive to ever be in even the slightest danger of misuse. Apart from making sure that crypto tax software creators have done everything possible to protect your data, we also strive to provide you with tools that can be used locally for additional peace of mind.
Finally, we rate the software we review based on the quality of the overall experience. If the whole process goes without a glitch and you end up with valuable data that almost makes doing your taxes a breeze, then the software in question deserves our honest recommendation. Preparing your taxes may not be fun, but it does not have to be so hard either.