In an effort to mainstream the use of crypto as a currency, the US government legalized its service back in 2021. Today, any US citizen can purchase and sell crypto and even make money from it legally. It also means that your income made with this virtual currency is also subject to tax.
As a result, many crypto owners need to calculate their taxes for personal trades on exchange platforms. For example, based on Webull tax documents, traders might need to file their taxes properly.
That’s why today, we’re going to be taking a look at the best digital programs that you can use to accomplish this task. Let’s start.
What Is a Crypto Tax Software?
Just as the name suggests, crypto tax software is a digital solution that you can use for doing taxes on your crypto income. It comes equipped with loads of useful features when handling incomes made with altcoins.
As the value of these coins is volatile in nature, doing taxes the traditional way doesn’t cut it. That’s why you need a specialized tool along with in-depth knowledge about the industry if you want to do this job perfectly.
So, let’s have a look at the top programs in 2023 that can help you take care of this efficiently.
1. Koinly
Koinly takes all the mystique out of crypto taxes with its user-friendly design. As you learn the ropes of handling this software, it will provide helpful tips to help you get used to it quickly.
It’s easy to connect your different crypto wallets with Koinly to get a detailed snapshot of all the transactions that you’ve had over the entire year. So, you can manage your trading portfolio and your tax liability all in one.
In terms of issues, while there are security measures to protect your information, it’s not nearly enough as other similar options in this category.
2. TurboTax Crypto
With TurboTax, no matter how complex the tax problem is, you can easily come up with a solution. As it allows integration with third-party crypto accounts, you can import all your sales into TurboTax for analysis and accurate tax filing. This makes it one of the best crypto tax softwares out there.
If you’re still facing issues, TurboTax also offers the services of tax experts for an additional charge. Should you decide to get this service, you can work with the tax expert or leave it in their care. Either way, it’s something that you should consider getting.
3. CoinTracker
One of the major issues that we’ve seen many users complaining about is the lack of customer support when they run into any issues. Fortunately, CoinTracker seeks to break the norm by delivering the best customer support we’ve seen.
In addition to doing general troubleshooting for the tax software, you can also seek the services of a tax expert similar to TurboTax. You can ask for a free consultation if you need advice on anything. But if you want to hire someone to do the work for you, that’s also an option that CoinTracker will give you.
Aside from doing taxes, CoinTracker is an excellent option if you want to manage your entire portfolio in real time. Connecting your crypto wallets with the software allows you to instantly monitor your previous and current transactions.
As for drawbacks, the free version doesn’t let you generate tax reports. That’s an option only reserved for those willing to get a paid subscription. If you want to purchase one yourself, the Hobbyist package will set you back $59/year and works for up to 100 transactions.
Our Thoughts
Looking at these recommendations and the other options on the market, you more or less get the same kinds of features for doing your crypto taxes. The slight differences you notice will be the deciding factors when you want to make a decision. So, make sure to do some research and consult some online reviews if you need help with choosing the right software.