3 Best Crypto Tax Software 2022

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For anyone who has bought, sold, or traded cryptocurrency, the first question that pops into their head when tax season comes around is How do I report crypto on my taxes? 

Like most people in this boat, you’ve probably been Googling how to report cryptocurrency on taxes and crypto tax software, looking for an answer. 

Luckily, we’ve done the hard work of research and found 3 of the best crypto tax software systems out there.

What is Crypto Tax?

A crypto tax is a tax on cryptocurrency transactions. It is similar to a traditional tax but levied on cryptocurrency transactions.

Cryptocurrency transactions are usually taxable if they bring in money from outside the country. You may have to pay taxes on your gains from trading cryptocurrencies.

Some countries have started to impose their crypto taxes. For example, Japan has set a capital gains tax on profits made from cryptocurrency trading. In some cases, crypto taxes are levied on the value of cryptocurrencies rather than the profits from trading them.

It is essential to consult with an accountant or tax specialist if you are thinking about filing a crypto tax return. They will be able to help you determine which type of crypto tax applies to your situation and recommend the best way to file it.

How Does Crypto Tax Software Work?

Crypto tax software is an excellent way for taxpayers to understand their taxes related to cryptocurrency transactions. The software provides detailed information about each transaction, including the amount of cryptocurrency involved, the price at the time, and the identification of the parties involved in the transaction.

Many taxpayers are unaware of their tax obligations related to cryptocurrency transactions. Crypto tax software can help ensure your taxes are paid accurately and promptly. The software also provides guidance on which taxes apply to your particular situation.

1.   CoinLedger Software – Best Crypto Tax Software

Several different crypto tax software options are available, but we believe CoinLedger is the best option.

CoinLedger is a comprehensive cryptocurrency tax calculator and tax reporting software for traders. We make it easy to do your taxes so you can free up your time, save on fees, and live more fully. 

CoinLedger has an intuitive interface that lets you quickly enter transactions and calculate capital gains/losses for various tax events. It also imports data from over 100 exchanges worldwide and keeps accurate records of your cryptocurrency trades and holdings. 

CoinLedger is currently the only solution that supports taxable events not just within one country or state (e.g., U.S.) but across all levels of government (e.g., federal & state).

Features:

• A built-in arbitrage engine that automatically makes profitable trades
• A powerful trading platform with a charting feature that allows you to trade multiple cryptocurrencies at the same time
• An advanced dashboard with data on your holdings, transactions, and tax liability CoinLedger is very easy to use. It is an excellent choice for investors and tax preparers who want a straightforward way to manage their crypto assets.
• The system works on any Windows computer, although the app is designed for PC and Mac.
• It integrates with bitcoin wallets, and you can use it to calculate gains and losses from trading and investing in cryptocurrency. 

Pros:

• It is one of the least expensive platforms on our list. 
• It supports the most popular coins in the market, such as Litecoin, Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and Ripple(XRP). 
• CoinLedger does not charge any commissions for trading transactions. 
• You can always get a detailed wallet overview using their simplistic yet practical interface.

Cons:

• It is unclear what CoinLedger supports additional features at present. 
• Its customer service team is relatively inexperienced in handling clients’ questions and issues.

Key Takeaways: 

Many cryptocurrency traders prefer CoinLedger because of its ease of use and ability to profit from trading. With this software, you never need to worry about missing critical financial transactions or making an error in your calculations.

Real currencies are always back coins. It is also effortless to use compared to other platforms. Made for novice traders, it can help them get started quickly with a trading robot.

2.   Taxbit Software – Best Crypto Tax Software

Taxbit Software is one of the best options because it is reliable, user-friendly, and has many features.

TB is a free service that offers you a tax calculator, wealth management products, and cryptocurrency investment services. Taxbit’s focus is on how to make saving money more accessible and cheaper. They offer investments in index funds, ETFs, stocks, and commodities. There are no trading fees with Taxbit.

Taxbit Software helps you track all your crypto transactions and holdings. It also provides a dashboard showing you how much tax you have paid. And what needs to be done to claim your taxes back.

Features:

• The core features of Taxbit include crypto tax calculation, crypto wallet management, reporting, fiat to crypto conversions, and vice versa. 
• In addition to these main features, various other functions like planning retirement goals by creating portfolios from multiple coins/tokens. 
• Users can also set alerts when prices hit specific levels or new tokens become available. 

Pros:

• For users who hold more than 100 coins, Taxbit is a good option because it is easy to use. 
• It automatically calculates your gains and losses and any capital gains you may owe. 
• The software integrates with many exchanges, including Coinbase, which will automatically import any trades without requiring manual input.
• If there are any discrepancies between entries in the software, they will be alerted by email.

Cons:   

• The software isn’t always able to see the workstation.
• It does not have an option for printing checks.
• There is no way to set up multiple accounts that are specific to payroll
• It gets stuck on “Printing” sometimes, even though there isn’t any print job in progress at the time.
• The interface design is kind of ugly.

Key Takeaways:  

If you are looking for an all-in-one package that will help you keep track of all your holdings and transactions, then Taxbit is a good option. A downside is that this software cannot consider different tax rates based on income brackets. 

3.   ZenLedger Software – Best Crypto Tax Software

One of the best crypto tax software options is ZenLedger. This software was designed specifically for people who are taxed on their crypto holdings. It allows you to track all of your transactions and provides detailed reports that will help you understand your finances.

You can also customize your reports to focus on specific areas of your finances. This software is perfect for people who are new to cryptocurrency taxation or want to improve their understanding of their finances.

Features:

• It Supports multiple currencies.
• It has International Support.
• Detailed reports show you how much you spent, spent, and saved.
• At the end of the year, it provides a complete summary of your finances.
• It customizes your reports with a spreadsheet that allows you to focus on specific areas of your finances.
• It tracks other transactions like a sale from the exchange or how much cash you gave away to charity.

Pros:

• It is easy to use and understand. 
• Plus, the customer service team has been known to respond quickly to inquiries if you ever need them. The mobile app makes it easier than ever before to stay up-to-date with what’s going on with your investments.

Cons:

• You can only use it for one currency. 
• If you invest in several currencies, you will need a different program for each. 
• Plus, if your investment platform doesn’t sync with ZenLedger, you won’t be able to use it either.

Key Takeaways:  

ZenLedger offers an excellent way to organize your finances and manage your income taxes. All the information is organized into categories to see where your money went throughout the year.

As a bonus, there is also a detailed report about charitable giving, which can come in handy when preparing for tax season. 

What Is the Best Way to File Crypto Taxes?

You can file your taxes manually. It can be done using forms that are provided by the IRS or by using online calculators. However, this method can be challenging to calculate your tax liability accurately. Additionally, mistakes can lead to penalties and additional taxes.

 The best way to file crypto taxes depends on various factors, including your tax situation and investment holdings. Talk to an accountant or financial advisor if you have any questions about filing your taxes in light of your crypto investments. In contrast, many different tax filing options are available.

Conclusion

Tax season is here, meaning it’s time to start thinking about how you will pay your taxes. While there are many options out there, I’ve chosen three of the best crypto tax software packages on the market today. 

This software makes it easy for you to keep track of all your crypto transactions, which will help you submit your taxes promptly. Make sure to do your research before making any decisions. After all, this is an important time of year when saving money can mean a lot!

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