The IRS treats cryptocurrency as property. Buying and holding it isn’t a taxable event because that doesn’t generate capital gains or losses — but selling and exchanging it does. So if you did either of those things in 2022, you’ll have to report it at tax time. Likewise, if you received crypto as a payment or used it to pay someone else for goods and services.
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The software you choose for your tax preparation can have big implications, so do your research.
When shopping for tax software that can cover your needs, look for compatibility with any and all exchanges and wallets that you used to make transactions last year. It should seamlessly upload third-party paperwork, data and files that pertain to your transactions, or it should help you populate those documents on your own.
Here’s a look at some of the top crypto-capable tax software programs. Three are all-in-one platforms that can handle both crypto reporting and general filing. The other two are crypto tax calculators that import far-flung data and prepare documents to upload and attach to your returns when you file with your preferred software provider.
Also see more on how to prepare for taxes on your crypto.
- Self-File: $69 plus $39 for state
- Assisted Premier: $139 plus $49 per state
- Full-Service Premier: $329 plus $49 per state
TurboTax was already the biggest name in the tax software game, and now it’s the self-described “authority in crypto taxes with the most comprehensive import coverage, including the top 15 exchanges.”
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TurboTax served more than 1 million crypto investors last year and facilitated more than $2 billion in tax refunds on their behalf.
It makes importation easy from exchanges and wallets and automatically calculates capital gains and losses, even for NFTs. The program sniffs out missing cost-basis values and helps uncover deductible capital losses from prior years while carrying any that are left over into future years.
Crypto tax experts are available to offer unlimited advice for those who choose Assisted Premier or Full-Service Premier packages.
- Deluxe: $24.95 plus $39 for state
- Premier: $34.95 plus $69 per state
- Self-Employed: $64.95 plus $89 per state
Like TurboTax, TaxAct is an official partner of Coinbase, America’s largest and only publicly traded cryptocurrency exchange. TaxAct also partnered with TaxBit, a tax and accounting solution that specializes in digital assets.
The IRS requires filers to report all taxable crypto activity on Form 8949 regardless of whether the activity was reported on Form 1099-B. TaxAct users can easily get that done by syncing their wallets and exchanges to TaxBit, which supports more than 500 crypto marketplaces. TaxBit does all the hard work, identifying taxable events, tracking cost basis, and calculating gains and losses.
From there, just download Form 8949 for all exchanges you used and upload them to TaxAct for easy filing — TaxBit and TaxAct even created a custom file format to make the process smoother.
- Premium: $55 plus $37 for state
- Live expert help: Starting at $115
H&R Block offers four price tiers, but Premium is the only one that’s suitable for those with cryptocurrency transactions to report. It allows for seamless connection to external accounts for importing critical documents and data. If you filed with a different company last year, H&R Block makes it easy to switch: Just upload your tax return and its software will do the rest.
Basic tech support is available for all Premium members, but those who need it can add unlimited live expert assistance that includes screen sharing and video chat for an extra charge. H&R’s four promises are a max refund guarantee, an audit support guarantee, an accuracy guarantee and a no-surprises guarantee.
- Essential features: $0
- Newbie: $49
- Hodler: $99
- Trader: $179
One of the world’s most popular crypto tax programs, Koinly is available in 20-plus countries. It can calculate your taxes for this year while helping you reduce them for next year. Koinly can prepare Form 8949, Schedule D and other important documents in less than 20 minutes and is compatible with major providers like TurboTax and TaxAct.
Just connect your wallets, exchanges and blockchain addresses and view your total holdings, growth over time, tax liabilities and fiat currency ROI, including staking, lending and mining.
Automated data import unifies your transactions in one place, including margins, futures trading, staking and DeFi. It’s compatible with more than 20,000 cryptocurrencies, 400 exchanges, 170 blockchains and 100 wallets.
- Free: $0
- Hobbyist: $49
- Investor: $99
- Unlimited: $199+
Like Koinly, CoinLedger is an official partner of major software providers like TurboTax and TaxAct. More than 300,000 users count on the system, which quickly and easily imports all transactions from your wallets and exchanges, including NFTs, interest earned and trades executed. You’ll have a chance to preview your tax report before you generate it and export it to your accountant or filing software.
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This article originally appeared on GOBankingRates.com: Best Crypto Tax Software
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