If you engage in cryptocurrency transactions that result in sales or earnings throughout the year, you’ll likely have to include this income in your tax filings. Navigating taxes can be daunting, but specialized crypto tax software can alleviate much of the complexity. In this guide, we have mentioned some of the best crypto tax software. Let’s get started.
Best Crypto Tax Software
1. ZenLedger
ZenLedger is the best crypto tax software that helps you keep track of your cryptocurrency investments and taxes. It lets you see how your digital currency portfolio is doing in real-time and helps you figure out how much tax you owe on your profits.
The software is designed to be easy to use, even if you’re not familiar with accounting or tax laws. It can connect to different cryptocurrency exchanges and wallets where you store your coins. ZenLedger also works well with popular accounting software like TurboTax, making it simpler to prepare your taxes.
Whether you’re an individual investor or a tax professional, ZenLedger is great for making sure you’re accurately reporting your cryptocurrency gains and paying the right amount of taxes. It’s a handy tool for anyone who wants to manage their digital currency investments and stay on top of their tax obligations.
Pros
- Provides precise and current tax reports
- Supports connectivity with numerous exchanges
- Features a user-friendly interface
Cons
- Additional fees are required for DeFi support
- Limited capabilities on the free plan
- Only offers US tax form downloads
2. TurboTax Premium
TurboTax Premium stands out as our top choice for crypto tax software in 2024. From a renowned tax preparation company, it excels not only in reporting crypto transactions but also in handling complex tax scenarios overall. The software features intuitive navigation, comprehensive tool tips and FAQs, and excellent customer support, including access to tax experts for additional assistance. Importantly, TurboTax Premium uniquely allows users to file their entire tax returns directly through the platform.
Pros
- Imports crypto sales directly into the software for convenience.
- Enables filing of your entire tax return directly, a unique feature among crypto tax products.
Cons
- Crypto-related functions are exclusive to TurboTax filers.
3. Koinly
Koinly offers a user-friendly interface that simplifies the process of managing crypto tax obligations. It supports easy integration of various crypto accounts, providing a clear overview of your activity throughout the year. Koinly also distinguishes itself with responsive customer support via live chat and email. However, it should be noted that its security measures, limited to SSL technology, are more basic compared to some competitors offering additional layers of protection like two-factor authentication.
Choosing the right crypto tax software can significantly streamline your tax reporting process, ensuring compliance and potentially maximizing your deductions.
Pros
- Features intuitive navigation and a straightforward interface.
- Enables continuous tracking of all cryptocurrency accounts.
- Offers a free trial to begin preparing tax reports.
Cons
- Requires payment to download finalized crypto tax forms.
- Security features are less robust compared to competitors.
4. CoinTracker
CoinTracker is a great option if you need online software to handle your cryptocurrency taxes and you want good customer support.
They offer help through email, and they’re working on adding live chat soon. CoinTracker can also connect you with a crypto expert who can assist with your entire tax return and provide legal tax advice. While the first consultation is usually free, there may be a fee if you decide to hire a CoinTracker professional.
The platform is designed to help you manage all your different crypto wallets in one place. CoinTracker updates your portfolio automatically, so you can easily see how your investments are doing and keep track of all your transactions.
One downside is that if you use the free version of CoinTracker, which is available for users with 10,000 transactions or less, you won’t get tax reports.
Pros
- Provides customer support via email with response times typically ranging from one to two days. A live chat feature is expected in the future.
- Offers access to “vetted crypto experts” who can assist with completing full tax returns and offer legal tax advice.
Cons
- Connecting with a CoinTracker tax professional starts at $500.
- The free version of CoinTracker does not include tax reports.
Final Thoughts
Crypto tax software makes it easier to report and manage taxes on your cryptocurrency investments. It helps you track what you’ve bought and sold, calculates how much tax you owe, and ensures you follow the rules. Choosing the right software depends on how easy it is to use, how well it supports different exchanges and tax forms, and how it keeps your information safe. Using crypto tax software can save you time and make sure you’re handling your digital investments correctly come tax time.