Legally speaking, digital assets are taxable, according to the IRS. If you don’t report cryptocurrency on your year-end taxes, the IRS will probably scrutinize your tax returns. Criminal prosecution for this offense could result in a fine of up to $250,000 or five years in jail in the US.
As a third-party aggregator for data collection, crypto tax software is a crucial instrument. If you buy a subscription package, this software can establish connections to all of your cryptocurrency exchanges, wallets, and addresses. After balancing the transactions, it will generate a thorough gain and loss report that complies with IRS regulations.
Top 5 Cryptocurrency Tax Software
Highlighted below are some crypto tax software trackers compiled by Bitcoin Market Journal to help you get your “house in order:”
CoinTracker
Area best suited: for cryptocurrency and NFT taxes.
CoinTracker syncs all of the data from your cryptocurrency holdings and uses it to generate the tax documents you need to submit your taxes. More than 500 exchanges and 10,000 coins are supported by the program. Additionally, TaxAct and TurboTax, two popular general tax software, are compatible with them.
Support for NFT-related trade taxes is a standout feature made possible through a collaboration with Opensea.
Key Features:
- Produces annual tax reports automatically.
- TaxAct and TurboTax compatible.
- Compatible with both Android and iPhone users.
- It has a 3.1 Trustpilot rating.
TaxBit
Areas best suited: for professional traders and enterprises handling clients’ crypto taxes.
In contrast to other software solutions, TaxBit is unique in that tax lawyers and CPAs collaborated with software developers to design it. In the event of an audit, the software’s extensive electronic paper trail will support you. Everyone, from inexperienced investors to business regulators, may use TaxBit’s exceptionally user-friendly interface.
Key Features:
- Supports more than 500 exchanges and 2,000 different currencies.
- Teamed up with BlockFi to simplify crypto taxes for BlockFi users
- A detailed dashboard that displays the balances of your assets, unrealized earnings and losses, and tax situations
- Integrated with TurboTax
- A 4.0 rating on TrustPilot
CoinTracking
Areas best suited: for cryptocurrency traders and companies.
In the field of cryptocurrency taxes, CoinTracking is a pioneer. It was initially a portfolio-tracking app. It now analyzes cryptocurrency trades and produces instantaneous tax reports. You can use the live demo feature to get a feel for the product before purchasing it. The comprehensive solution offered by CoinTracking allows you access to CPAs and agents in the USA.
Key Features:
- Enables API-based automatic imports.
- Two-factor authentication (2FA).
- Produces tax reports for more than 100 nations.
- 2.9 out of 5 stars on Trustpilot.
Accointing
Areas best suited: for both novice and experienced crypto traders looking for robust features
Accointing is a cryptocurrency tax reporting and tracking tool that gives you the ability to track the market, assess your portfolio, and generate tax reports for simple tax filing. Both inexperienced and experienced crypto traders can use Accointing’s user-friendly interface. Over 400 exchanges are supported by the software. You may also use your wallet address to automatically import all of your cryptocurrency transactions.
Key Features:
- Provides support for over 7,500 currencies and more than 400 wallets and exchanges.
- Print as many reports as you like
- Monitor your cryptocurrency holdings
- Tools for portfolio analysis to aid in decision-making
- Integrated with TurboTax
- A 4.0 rating on TrustPilot
CoinLedger
Areas best suited: for cryptocurrency hobbyists and casual investors
According to CoinLedger, this crypto tax software boasts over 300,000 crypto investors. You can file taxes for both cryptocurrency and NFTs using the tax preparation software. Additionally, it has a user-friendly interface that enables you to import data, examine taxes, and produce profit and loss reports for NFTs and crypto assets. It also integrates with TaxAct and TurboTax.
Key Features:
- Incorporates TurboTax
- Complete tax returns for several nations
- Portfolio management
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