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How To Report Taxes On Crypto: 4 Crypto Tax Software For 2023
Last updated: May 8, 2023 10 min read
Let’s admit it – nobody likes to deal with taxes. And, when it comes to crypto, most people don’t even know how to report these taxes properly, or that crypto tax solutions exist.
In this situation, the best way to help yourself is to use crypto tax tools tailored to simplify the tax reporting process and lift this burden off your shoulders.
It doesn’t matter whether you’re a business owner that accepts cryptocurrency payments, an individual who trades crypto, or someone who gets a salary in Bitcoin or other crypto assets – crypto tax tools will help anyone navigating in the crypto world.
Besides, as crypto regulations are being clarified in every corner of the world, dealing with crypto taxes is now not a choice but a necessity.
Keeping that in mind, here are four top crypto tax tools that can do this daunting job for you.
Four Best Crypto Tax Tools In 2023
If you fancy NOT doing your taxes manually, feel free to use any of these tools below, depending on which one suits your needs best.
Without further ado, here are four top choices for a crypto tax solution:
Koinly makes cryptocurrency tax calculation and discovery simple and accessible for people living across 20+ countries, providing free report preview, support for Form 8949/D Schedule D filing, seamless integration with TurboTax/TaxAct services.
Let’s delve deeper into how Koinly can simplify crypto taxes for you.
A User-Friendly Experience
When it comes to cryptocurrency taxes, Koinly offers a true user-friendly experience. If your coins have been spread across different exchanges or wallets without sufficient records being kept by you, Koinly can certainly assist.
No longer do you need to waste hours downloading CSV files, formatting data, estimating market prices and trying to calculate tax calculations accurately – with Koinly you can import transactions directly from your ledger, sync your exchange trading history easily, and receive ready-to-file tax reports within minutes!
Import From 300+ Crypto Wallets And Exchanges
Koinly allows you to seamlessly import trades from over 300 wallets and exchanges using either API calls or CSV files.
Koinly makes connecting blockchain wallets using public addresses easy, while managing DeFi, margin trades and futures from platforms like Kraken, Nexo and BitMEX seamless and accurate tracking of original costs – providing reliable handling for cryptocurrency taxes.
An AI transfer matching feature also ensures accurate cost tracking, which makes Koinly an efficient tool to handle cryptocurrency taxes.
The Cryptocurrency Tax Calculator
Koinly’s free tax calculator gives you an early glimpse of your profit or loss for each tax year, giving an indication of where any future returns might lie.
Your portfolio tracking feature provides a visually engaging dashboard to display all your holdings, returns and growth over time – along with both realized and unrealized capital gains so you stay fully informed about the status of your investments.
Koinly Is Compliant With Local Laws
No matter if you prefer filing taxes yourself or working with software such as TurboTax to file them – or working with an accountant – Koinly’s crypto tax reports provide all of the data and analysis you require for filing taxes with ease.
Verdict: Koinly Is Definitely Worth Looking Into
Koinly simplifies the complex world of cryptocurrency taxes, offering a user-friendly, reliable, and efficient platform to help you stay compliant with tax laws.
With the ability to import from over 300 wallets and exchanges, a comprehensive tax calculator, and seamless integration with popular tax software, Koinly is a solution you can trust.
Try it for yourself and experience the simplicity and peace of mind that comes with using Koinly for your crypto tax reporting.
Accointing is an advanced platform designed to assist cryptocurrency owners in efficiently monitoring and filing taxes for their crypto portfolio.
Accointing’s crypto tracking software enables you to keep an eye on your net worth and file taxes seamlessly without needing credit cards; plus it offers up a tax report covering up to 25 transactions for free!
Let us show how Accointing can make tax time easy for you.
Accointing Offers Features To Track And File Taxes For Crypto Activities
Accointing offers various features designed to assist with managing taxes for Bitcoin, DeFi, NFTs and all forms of crypto activities – not only Bitcoin!
The platform provides over 300 integrations that instantly import transactions, calculate gains/losses automatically and stay informed with real-time crypto portfolio insights.
Staying Informed of Your Crypto Portfolio Insights
Accointing’s platform gives you access to real-time analytics of your performance and transactions across the cryptocurrency ecosystem in real-time, giving you valuable insight into your crypto portfolio while staying informed of investments.
Filing Crypto Taxes Has Never Been Easier
With just five clicks, Accointing makes filing crypto taxes simpler than ever – using widely accepted accounting principles such as FIFO, LIFO and HIFO methods for reporting. Our easy solution makes tax time fun again!
Accointing Helps You Navigate the Crypto Market And Influence Crypto Space
Accointing is designed to enable users to explore and shape the crypto market, set alerts for market performance and research trending tokens while sharing your personalized and curated token lists on Twitter.
Verdict: Accointing Is One Of The Best Crypto tax Tools Out There
Accointing is the all-in-one crypto tax solution you need to simplify your tax experience.
With its easy-to-use platform and comprehensive features, you can track your net worth, monitor your crypto portfolio in real-time, and file your taxes with ease.
Try Accointing today and discover the convenience and peace of mind that comes with using a trusted crypto tax solution.
CoinLedger is a cryptocurrency and NFT tax software designed to save you time and maximize your refund.
With free portfolio tracking, official TurboTax partnership, and international support, CoinLedger is the ultimate solution for managing your crypto taxes.
Let’s explore the features that make CoinLedger a game-changer in the world of crypto tax solutions.
Effortless Crypto Tax Calculations In 3 Easy Steps
With CoinLedger, calculating your crypto taxes has never been simpler. In just three steps, you can import transactions, preview your report, and generate your tax report.
Import your crypto transactions from wallets and exchanges, review your report, and generate your tax document with ease.
Save Money on Your Tax Bill with Crypto Losses
CoinLedger helps you claim tax savings by writing off crypto losses. By leveraging these deductions, you can save thousands on your tax bill.
Easily Import Historical Data
CoinLedger integrates seamlessly with your favorite platforms, allowing you to import historical transactions effortlessly. Whether you’re trading, earning interest, or buying NFTs, CoinLedger makes it easy to import transactions and calculate your taxes.
Export And File With Ease
Once your tax forms are complete, you can download them to file yourself, send to your accountant, or import into your preferred tax filing software.
Trusted TurboTax Partner
As an official partner of the largest tax preparation platform, CoinLedger makes it easier than ever to report your crypto gains and losses. You can directly import your reports into TurboTax Online, TurboTax Desktop, TaxAct, and many other tax platforms.
International Tax Reporting
CoinLedger supports generating crypto gains, losses, and income reports in any currency. These reports can be used to complete the relevant tax forms for your country, making it a versatile solution for crypto investors worldwide.
Verdict: CoinLedger Is An Awesome Tax Tool!
CoinLedger is the ultimate crypto tax solution that simplifies the filing process, helping you save time and maximize your refund.
Its user-friendly platform and comprehensive features make it the go-to choice for over 400,000 crypto investors.
Give CoinLedger a try and experience the stress-free filing process that comes with using this trusted crypto tax solution.
ZenLedger, a powerful crypto tax software, simplifies the process and ensures you never overpay on your crypto taxes.
With its easy-to-use platform, ZenLedger enables you to track your trades, review your profits and losses, and enjoy a hassle-free tax filing experience.
Check out the features that make ZenLedger the ideal choice for managing your crypto taxes.
Use ZenLedger In 3 Easy Steps
First, simply import your exchanges and wallets via read-only API, CSV, or public receiving address to create a comprehensive crypto tax report.
After importing, review your transactions to ensure successful importation. ZenLedger’s custom-built resolution center helps identify any missing transactions for accurate reporting.
Lastly, instantly generate and sign your tax forms, including Form 8949, Schedule 1, and Schedule D. ZenLedger also offers an exclusive Tax-Loss Harvesting tool and Grand Unified Accounting reports for added convenience.
Unrivaled Exchanges And Integrations
ZenLedger provides support for over 400 exchanges, 100 DeFi protocols and 10 NFT platforms – more integration options than its rivals – with continuous addition of new integrations for its functionality enhancement.
In particular, TurboTax integration and Premium support is offered.
TurboTax Integration And Premium Support
As an official TurboTax partner, ZenLedger allows you to seamlessly upload transactions from the crypto tax tool to TurboTax.
Additionally, the platform provides premium support to users 7 days a week, including evenings, through chat, email, or phone.
Tax Professional Suite
ZenLedger’s Tax Professional Suite lets you easily manage client portfolios from a single interface at no cost to the tax professional.
Quickly reconcile transactions and automatically generate tax forms for multiple clients with this powerful crypto tax software.
Additional Benefits Of ZenLedger
- Cryptocurrency Tax Software: ZenLedger offers advanced tools to help you save money on your taxes.
- Pricing: The platform boasts the best pricing in the industry, including a free plan.
- Tax-Loss Harvesting Tool: Save money and trade smarter with detailed reports included in all plans.
- The Grand Unified Spreadsheet: Access all your transaction details in a single, easy-to-read spreadsheet.
- Security and Encryption: ZenLedger prioritizes privacy, offering 2FA (two-factor authentication) to protect your data.
Verdict: ZenLedger Is A Crypto Tax Solution For Pros
ZenLedger is a robust crypto tax solution that simplifies the tax filing process for DeFi, NFT, and cryptocurrency transactions.
Its user-friendly interface, comprehensive features, and extensive integrations make it the top choice for crypto investors and tax professionals alike.
Try ZenLedger today and experience the unparalleled ease of managing your crypto taxes.
How Do Cryptocurrency Taxes Work?
Cryptocurrency taxes treat digital assets like any property and vary based on jurisdiction; two main aspects are capital gains tax and income tax.
Capital gains or losses result from selling or trading cryptocurrency, with any differences between purchase and selling prices subject to taxation. Income taxes apply when receiving cryptocurrency as payment, mining rewards, staking rewards or interest.
Maintaining accurate records of your transactions and adhering to local tax authority requirements are both key aspects of compliance with cryptocurrency transactions. Compliance may involve specific forms and schedules for reporting them.
Do Crypto-to-Crypto Trades Count As A Taxable Event?
Yes, crypto-to-crypto trading usually counts as a taxable event when used to exchange one cryptocurrency for another.
Tax implications arise when there is an imbalance between two digital assets when they were exchanged at time of transaction, thus necessitating calculations and reports for capital gains or losses on every crypto-to-crypto exchange transaction, even without fiat currency being involved.
Do I Need To Pay Taxes For Transacting Between My Wallets?
In general, moving crypto from one wallet that you own to another does not trigger tax liability.
Since you’re not selling or exchanging it for another cryptocurrency, any capital gains or losses don’t apply – instead it simply moves from one location to the other under your direct control.
However, accurate records must be kept of such transfers; tax authorities could request documentation as verification for your transactions.