This post is meant to help navigate which cryptocurrency tax calculators and software tools are the most useful/helpful for crypto enthusiasts. I have used them all and provide my thoughts and feedback below.

I have now been trading cryptocurrencies like bitcoin since 2017 when the markets really exploded. My high-volume trading strategy got me really stressed out when I found out the tax implications of it all. To properly report my capital gains and losses on my trades, I needed to report my cost basis and sale price in US Dollars every single time I traded one cryptocurrency for another on Form 8949.

As you can see, this put me in a bind, so I set out on a quest to find the best cryptocurrency tax calculator out there. I tried many, many different software platforms during the process. So I thought it would be helpful to discuss what I learned and list my personal favorites and a brief review about them below!

1. CryptoTrader.Tax

CryptoTrader.Tax was my favorite tax solution that I tried.

User Experience: The platform has a very straightforward 5 step process that guides the user through the tax reporting process. I found it extremely intuitive to use when compared to some of the other tools on the market. The other thing I loved about the user experience of the product was all of the help guides that they have embedded in the app. These articles help you figure out how to properly pull in all of your crypto trades from all of your different exchanges. It had everything I needed to quickly build my report.

Exchange support: CryptoTrader.Tax supports over 20 of the most popular cryptocurrency exchanges. They have support for all of the exchanges that I trade on like KuCoin and Binance.

Pricing: The platform offers different pricing packages depending on your volume of trades that you carried out. The pricing ranges from $49 — $199. Although I figured out that you can use the code CRYPTOTAX10 for a 10% discount on all of the tax reports.

Other Benefits: CryptoTrader.Tax also offers a direct integration with TurboTax. I don’t personally use TurboTax, but I know this is a popular platform for DIY tax filers. They also make it incredibly easy to send the tax report to your tax professional (which is what I did).

CryptoTrader.Tax was ultimately the platform I prefer because of their easy to use app. I found some of the other platforms to be a bit more daunting.

2. TokenTax

TokenTax offers a similar software platform that allows you to import your trades and do everything yourself or use a crypto tax accountant to help with your filing.

User Experience: The design of the app is nice. Initially I found it a bit difficult to import some of my Binance transactions into the platform, but ultimately I got them in. The platform requires you to pay up front before being let into their software which was a bit different than some of the other tools. It was nice how their team has some crypto accountants on staff.

Exchange Support: Similar to CryptoTrader.Tax, TokenTax integrates with all of the major crypto exchanges. It had all of the ones that I needed to complete my taxes.

Pricing: TokenTax is a good amount more expensive than the other tools on the market. I believe this is because of their accountant direct support. For full support, pricing starts at $499 and goes up to $1,999.

3. ZenLedger

Lastly, I tried ZenLedger in my search for a complete Crypto Taxes Calculator. ZenLedger has very powerful features built into the platform, but ultimately I found it very difficult to use.

User Experience: Okay — could improve. I spent a lot of time trying to match transactions from my wallets with the deposits and withdrawals from exchanges. This ended up taking me quite a while to figure out. I liked the design of the app, and once I got everything in I was able to generate the proper reports.

Exchange Support: ZenLedger offers key exchange support for 12 exchanges that they have listed on their website. They supported all of the exchanges that I needed to complete my gains and losses.

Pricing: ZenLedger’s pricing starts at $149 and goes up to $999 for all of your tax documents.

Conclusion:

These were the three apps that I tried and tested out to get my crypto taxes done. The whole thing was a process, but honestly using software makes the reporting process 10X easier than if I were to try to do this by hand. For that reason alone, I think it’s worth saving me the time and headache and paying for these programs.

How is Cryptocurrency Taxed?

The IRS treats cryptocurrencies as property for tax purposes. Just like other forms of property — stocks, bonds, real estate — you incur a tax reporting liability when you sell or trade cryptocurrency for more or less than you acquired it for.

For example, if you purchased 0.1 Bitcoin for $1000 in April of 2018 and then sold it two months later for $2,000, you have a $1,000 capital gain. You report this gain on your tax return, and depending on what tax bracket you fall under, you will pay a certain percentage of tax on the gain. Rates fluctuate based on your tax bracket as well as depending on if it was a short term vs. a long term gain.