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    Which Crypto Tax Software Is Right for You

    In the United States, the government sees cryptocurrency as property like stocks and real property. This means you need to report gains from cryptocurrency when you file taxes.

    Like stocks, there are long-term capital gains tax and short-term capital gains tax for crypto. With short-term rates, it is taxed at your ordinary income. But, with long-term rates or crypto you hold longer than a year, you have more favorable rates ranging from 0 to 20% as the maximum. With that, you may need help, and these crypto tax software can help make the process easier.

    CoinTracker

    Coin Tracker tracks crypto data by integrating with more than 300 crypto exchanges and wallets. Also, it will create an IRS Form 8949. Based on the number of crypto transactions you have, it is free if you have 25 or fewer transactions, but the price goes up from there. There is technically an unlimited tier with 1 million or more transactions, but at 250,000, they ask you to contact them.

    TokenTax

    Unlike the other software on this list, you can create tax reports or let TokenTax do it for you. But, with that upside, there are no free plans as well as it would cost a lot to have them file taxes for you.

    Without having them file taxes for you, you can only have up to 20,000 transactions. But, even if you do want them to file taxes for you, you still only get 30,000 transactions.

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    ZenLedger

    ZenLedger aggregates crypto activity and converts it into IRS forms like Form 8949. Also, it offers a tax-loss harvesting tool and a feature that compiles transaction history into a spreadsheet.

    Again, the price tiers are based on the number of transactions you have per year. Like CoinTracker, it offers unlimited transactions.

    Blockpit

    Blockpit only has a limited number of exchanges they support, and like most of the other software, they offer up to 25 transactions for free. Also, they offer unlimited transactions.

    Like the other software, Blockpit will keep track of your tax liability by tracking, monitoring, and reporting.

    Accointing

    Accointing supports hundreds of exchanges and lets you track crypto transactions in real-time. It also charges based on the number of transactions within the year.

    It allows up to 50,000 transactions, but it has no free tier. On the bright side, you can use their tax-loss harvesting tool in every price tier.

    Bear.Tax

    They offer support for more crypto exchanges than Blockpit, but it is nowhere near in the hundreds like other software mentioned. However, like all the other software, it will produce all the IRS you need to present during tax season.

    Also, it is on a tiered pricing system as well with up to 1 million transactions during the year, but it does not seem to have a free plan.

    Which Crypto Tax Software Should You Use?

    No matter what crypto tax software you use, you will have to report it when you file taxes. So, it is better to prepare and research early.

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    It is one less thing on your mind and therefore less stress. With the improvement in technology, it has not been any easier than right now to track crypto and file taxes.

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