This story was originally published at BlockFi.com . For more information on understanding crypto taxes and managing your tax exposure, visit the BlockFi resource center . Calculating your crypto taxes is one of the more stressful parts of being a cryptocurrency trader. The time it takes to report on your crypto taxes depend on the number of coins you have, the number of trades you’ve done, and the number of exchanges you use. Not only that, but every exchange has a different output for tracking your trades, with some providing no output at all. Each of your trades need to be individually added up and recorded, creating a very time-consuming process. With all of this confusion, there is one thing we know for sure — it’s more important than ever to report your gains/losses to the IRS (or your country’s tax authority). One of the best ways to do this is through cryptocurrency tax software. Think TurboTax, but specifically for calculating your tax exposure from your cryptocurrency trading activity. These are the top 5 cryptocurrency tax software companies in the industry. TokenTax https://tokentax.us/ TokenTax is one of the easiest ways to report your cryptocurrency capital gains and income taxes. Rated by Forbes as , TokenTax is the only crypto tax platform that supports every major exchange. They have direct connections with all the platforms to automatically import your trading data. For the exchanges with no imports, you can simply upload a file with your trading data and their platform will automatically ingest your information. the best platform for filing cryptocurrency taxes Once all of your information is uploaded, TokenTax will generate all the forms you need to file your cryptocurrency taxes. This includes forms 8949, TurboTax, FBAR, FATCA, or any other file you might need. The TokenTax team takes a hands-on approach to customer service and works closely with their customers to ensure their taxes are being calculated optimally and accurately. BearTax https://bear.tax/ BearTax is one of the simplest ways to calculate your crypto taxes. The platform imports your transaction data using integrations with over 25 major exchanges to calculate your gains and provides export documents for you to file with your taxes. The BearTax platform has a number of useful features. Firstly, the user interface is clean and easy to understand. Their “smart matching” algorithm matches your withdrawals and deposits across their supported exchanges and is easily reviewable in the interface. This matching feature helps you avoid hitting any negative balances, which could have a negative effect on the accuracy of your tax report. Additionally, their gain/loss screen for capital gains calculation makes it easy to review your tax liabilities for each crypto asset you own. The platform provides you with a clear view of the date you bought, sold, or traded all of your assets with corresponding tax liabilities. They are also compatible with both centralized and decentralized exchanges, which lowers the difficulty level that comes along with decentralized trading. And if the exchange doesn’t have a way to connect, they accept data in a simple CSV format. , ranging from $0.99 to $199.99 per year. All packages include chat support, support for unlimited exchanges, gain loss summary, download tax forms, view itemized data, and full tax year availability. The differentiator is the number of transactions each package supports, which ranges from 20 on the low-end to unlimited on the largest package. The best part is that you are only charged to download the tax documents. All of the calculations are free. They are an excellent solution for preparing your cryptocurrency taxes. BearTax offers a number of pricing packages CryptoTrader.tax https://www.cryptotrader.tax/ CryptoTrader.tax helps cryptocurrency traders calculate their capital gains/loss exposure in minutes. Their simply interface makes it easy to import your trades and make sure that you’re not overpaying on your taxes. Their platform currently support Coinbase, Bittrex, Gemini, Binance, and Poloniex exchanges. After importing your trades, CryptoTrader will calculate your tax liability using the same first-in-first-out method used by CPAs and tax preparers across the industry. Once your tax exposure has been calculated, users are provided easily exportable tax documents for filing, including IRS Form 8949 and your cryptocurrency income. Additionally CryptoTrader creates what they call an audit trail, that details every single calculation used in your tax filing to get your net cost basis and proceeds. This report includes an income report, short and long term sales report, closing positions report, and a full audit trail. . The first is free, which offers importing unlimited trades and unlimited report revisions. However, your reports are not downloadable, requiring you to manually fill out the forms based on the data the platform provides. Alternatively, for $39.99 per year, users receive the above, plus the exportable IRS Form 8949 and Audit Trail documents. CryptoTrader offers two pricing packages ZenLedger https://www.zenledger.io/ ZenLedger is a simple way to calculate your crypto taxes in a simple interface. They are integrated with leading exchanges and support all the major crypto and fiat currencies. Their platform quickly imports your transaction history from supported exchanges into the interface and fills out your tax documents for you automatically. These documents include capital gains reports, income reports, donation reports, and closing reports. They also provide profit/loss statements for you and your CPA or tax preparer. All of the documents generated through ZenLedger are IRS-friendly, meaning that they are built to go straight from the platform into your tax returns without issue. Whether you’re a miner or occasional trader, ZenLedger has a very easy to use platform designed to make sure you never overpay taxes. , which range from $99 to $299 per year and include everything from exchange support, tax reports, and access for your CPA to the platform. The main differentiator is the number of transactions by package, which range from 100 to unlimited. ZenLedger has three pricing options CoinTracker https://www.cointracker.io/ CoinTracker is a hybrid crypto asset tracker and tax reporting software. Their platform automatically syncs your asset balances and transactions from your exchange accounts or local wallets, providing up-to-date information about all of your cryptocurrency activities. Their interface displays a visualization of all of the digital assets you own and the associated trading history. Additionally, CoinTracker also provides a performance tracker, which gives you a clear picture of your crypto investment performance over time. Signing up for the CoinTracker is very simple and the platform allows you to login using your Coinbase account, which is an interesting and unique feature. that range from $49 to $999 and differ based on the number of transactions you need tracked. All of their options include cost basis reports (FIFO, LIFO, HIFO, ACB, Share pool), auto-sync with exchanges and wallets, capital gains reports, and exportables like IRS Form 8949, TurboTax and TaxAct. CoinTracker offers four different pricing packages
