Best Crypto Tax Software: Is Turbotax Good for Crypto?

Investors from all around the world have seen the potential of this new digital currency and have begun to invest.

Taxes on bitcoin profits, on the other hand, are more complicated than they first appear. For your convenience, we’ve compiled a list of the top ten crypto tax software. Just imagine having to keep track of your cryptocurrency transactions for the IRS. Cryptocurrency mining and trading are both subject to IRS reporting requirements. The sheer volume of information is staggering.

Best Crypto Tax Software

Using the best crypto tax software, you can automate this procedure and have your tax returns ready to file. Let’s take a look at the results now that we’ve done the legwork for you.

Best Cryptocurrency Tax Software by Koinly

When It Comes to Crypto Tax Software, Taxbit Is a Pioneer

  • The best tax preparation programme is Tokentax.
  • It’s the fastest software for calculating crypto tax.
  • Best crypto tax for all services: Bitcoin Levy
  • Cryptocurrency news is dominated by Cointracking
  • Report preview that’s both trustworthy and free An alliance has been formed between TurboTax and the best cryptocurrency tax calculator.
  • a one-stop-shop for all of your crypto tax requirements
  • Easy-to-use tax software for cryptocurrency: Using TurboTax to Automate Your Tax Returns

We use a set of criteria to provide a score for each product and service.

Overview

In terms of features, Koinly has the most to offer when it comes to Bitcoin taxation. As well as giving you genuine information, this software gives you advice on how to prevent unnecessary expenses. Automatic data import is the first noteworthy function.

It is highly improbable that any transaction data would be lost due to the wide range of exchanges and wallets that are linked to it. Keeping track of fees, balance reports, and exchange data is as simple as a few mouse clicks. Advanced transaction screening is also a feature of this system.

Cryptocurrency Taxes

CryptoTrader.Tax

Fortuny’s product and service ratings are based on a set of standards developed by our editorial team.

Overview

You can use CryptoTrader.Tax to calculate your crypto taxes and generate IRS reports. With this service, you won’t have to worry about anything. Short- and long-term sales records, crypto income reports, and overseas gain/loss reports, all of which are required by the Internal Revenue Service, can be simply assembled. Tax-loss harvesting is a terrific addition to this approach. In addition to its simple layout, CryptoTrader.The tax provides dependable data. Over 100 exchanges and wallets are supported, as well as TurboTax and TaxDirect. The calculator can be downloaded for free and only costs a few cents each use.

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In the Ideal Situation

CryptoTaxCalculator

We use a set of criteria to provide a score for each product and service.

Overview

Your cryptocurrency taxes can be calculated more accurately using CryptoTaxCalculator. If you’re looking for software that is both easy to use and precise in its calculations, this one is for you! ICO participation, staking, mining, and airdrops are all considered by this tool. They will be calculated by the algorithm, and you will receive tax reports as a result.

Your realised capital gains and earnings will be documented in these records. Transmitting or entering the data into your tax programme is a breeze. Non-residents of the United States may use our CryptoTaxCalculator. Greece, Japan, Portugal, and the United Kingdom are just a few of the countries that benefit from this plan.

Are There Any Taxes on Cryptocurrency?

In the years 2021 and 2022, the number of people who invested in cryptocurrencies rapidly grew. Taxes on cryptocurrencies vary from country to country. The following is a broad overview of the taxes on cryptocurrencies in several countries:

USA

The IRS considers cryptocurrencies to be property, not a method of exchange, in the United States. Taxes on cryptocurrency would be the same as taxes on gold, stocks, and other forms of financial assets.

If and Only if the Following Conditions Are Met

  • Get the coin that was mined
  • Withdraw your cryptocurrency.
  • Bitcoin is a great way to reward yourself.
  • He or she will reward you in the form of digital tokens that represent your earnings.
  • Coins may be exchanged for tokens.
  • Almost everything can be paid for with a cryptocurrency.
  • The Internal Revenue Service (IRS) normally taxes cryptocurrency transactions between 10% and 20%.
    GB

In the United Kingdom, cryptocurrencies are viewed as capital. Bitcoin is taxed in the United States at a 10% base rate and a 20% additional rate. Your tax burden is determined by the amount of the gain, your taxable income, and any deductions you claim. What is the tax burden?

Best Crypto Tax Software

It’s tax-free to give crypto tokens to your spouse or civil partner. The UK’s capital gains tax exemption is £12,300. Canada comes in third place. Tokens purchased and held within Canada are exempt from Canadian taxes. It is the goal of this rule to tax the selling of cryptocurrencies. profit from: It will only be taxed on half of it.

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Is Turbotax a Good Thing for Bitcoin?

Currently, TurboTax Online has the most extensive import coverage for crypto taxes, encompassing the top 15 exchanges. TurboTax Online can help you import and understand cryptocurrency taxes, regardless of whether you use Coinbase, Robinhood, or another exchange.

What Is a Crypto Tax Software?

It might be difficult and time-consuming to figure out all of the many crypto-related taxes. For tax purposes, you’ll need to keep track of all of your cryptocurrency transactions. The software can take care of all of that for you.

Several software solutions have emerged in response to the growing popularity of cryptocurrencies and the increasing number of people who begin trading in crypto. To help you get the finest crypto tax software for tracking your taxes, take into account the following considerations:

What Is the Best Software for Cryptocurrency Tax?

ZenLedger, Accounting and Koinly are some of the options. The quality of these crypto tax tools is excellent. The best crypto tax software can sync your data with the biggest exchanges and provide basic profit and loss reports as well as tax reports.

Flexibility

Currently, there are a number more cryptocurrencies to choose from. Crypto tax software should be available for every major token. Regardless matter how many cryptocurrencies you possess, you may use the same technique to calculate your taxes.

Is navigating between apps and manually calculating token taxes an option if you value user experience? It is possible to switch from one cryptocurrency to another without affecting your tax calculations using this adaptable tax software.

Automated Data Entry

With the use of crypto tax software, you can save time by not having to manually enter all of your information. Events, dates, cost, tokens, and so on.

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A bitcoin tax tool that pulls transaction data from your wallet every time a transaction is done to minimise double taxation Moreover, it should be compatible with all major Bitcoin wallets.

Reliability

In the event of a miscalculation in tax computation, hefty fines could result in substantial financial losses.

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Even if your tax returns are error-free, you could still be accused of tax evasion. Choosing a trustworthy crypto tax software is therefore critical.

Easy-to-understand Documentation

As a stand-alone, IRS Form 8949 requires careful examination. Customers can download and file pre-filled paperwork from most crypto tax software at their convenience.

You should be able to depend on the pre-filled forms completely as long as the cryptocurrency tax calculation is accurate. The documentation you need to manage global taxes, gains and losses, and audits will be at your fingertips thanks to expert tax software.

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The features offered by various crypto tax software solutions will differ. The following characteristics to look for in a crypto tax management software: Duplicate transactions should be eliminated by the software. You don’t need to conduct a manual search to locate these particular transactions.

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When using a solid tax programme, you’ll be able to view everything you need to know in one location. It may be easier to deal with taxes if you have a well-designed dashboard in place.

Best Crypto Tax Software
There are tax experts who can be hired to double-check reports and execute other tasks with the best crypto tax software.

Pricing

Finally, take a look at the expense of using a specific tax management programme. There are a variety of elements that affect the cost of software, including how many integrations, bandwidth, and transactions are involved.

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There is no need to buy expensive software if you do not want to. Superior tax software may be worth the additional expense. Contracting ($9.99/year) and Koinly ($1.99) are our top selections for cryptocurrency tracking services.

Conclusion

If they all claim to have the greatest crypto tax filing choices, this is especially true. Kindly, however, is a great option provided you follow our advice.

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