If you have been trading crypto for some time, chances are that you have had to file crypto taxes. The IRS classifies crypto as property, so crypto-to-crypto trades are subject to capital gains tax rates, which is different from regular income or even short term capital gains tax rates.
You might be thinking that doing your taxes by hand or hiring someone to manage taxes just for crypto is going to be the cheaper route. You would be wrong.
One of the easiest ways to manage your crypto taxes would be with crypto tax software.
Hiring someone to manage crypto taxes for you could cost you upwards of $10,000 per year and doing it yourself is not much easier when there are so many crypto transactions that need your tax attention.
The Cryptotrader.tax software mentioned in this article is an automated crypto trading tax service with a user-friendly interface leading to accurate tax calculations.
For crypto traders who have not been keeping track of all their trades, selling off crypto to pay taxes can be a challenge.
CryptoTrader.Tax is focused on making it as easy as possible to file and pay your crypto taxes.
CryptoTrader.Tax automates the entire crypto tax reporting process – they import your trading history from most crypto exchanges and calculate your capital gains/losses for you.
For crypto traders who have not been keeping track of trades or needs help keeping track of crypto tax brackets, crypto tax software like this is the best bet for staying on top of crypto taxation.
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- Includes TurboTax integration for ease of use.
- Zero cost options available
- Tax loss harvesting tool assist in lowering your taxes.
- 100% Money-back guarantee
- A bit on the expensive side
- Outside of buying and selling, the exchange provides modest assistance for cryptocurrencies.
- Most activity is focused on US customers only
It is estimated that more than 8 out of 10 crypto traders have been filing incorrectly when it comes to crypto tax reporting.
This service is ideal for serious traders looking to manage crypto taxes and get the greatest possible reduction of their cryptocurrency tax liability. Still, it also offers beginner options perfect for new investors.
The CryptoTrader.Tax software is one of the most comprehensive bitcoin tax preparation solutions available, with a number of features that set it apart from the competition. The CryptoTrader.Tax service links to all major exchanges and platforms to make crypto tax filing quick and easy. It’s as simple as connecting your exchanges, importing purchases, and downloading your
Another appealing aspect is the ease with which it may be integrated into existing trading systems. Based on exchange records, CryptoTrader.Tax calculates the value of each trade at the time it occurred.
In simple terms, tax-loss harvesting is a process where securities (such as bitcoin) are sold at a loss to offset future tax liability. This option is the most popular method for reducing the tax burden of capital gains.
Tax-loss harvesting is a useful technique for lowering bitcoin tax or your overall crypto tax burden because cryptocurrencies are regulated differently by the IRS than traditional currencies.
Tax-loss harvesting is not available for every transaction, but you don’t have to worry about figuring it out yourself—CryptoTrader.Tax takes care of the rest.
Cryptotrader.Tax provides you with Form 8949 and capital gains reports, whether or not you use TurboTax or TaxAct. You may quickly input the data from these forms into your preferred tax preparation software.
Pricing & plans
CryptoTrader.Tax is a digital tax preparation service that offers four price categories to allow anyone from casual investors to experienced cryptocurrency traders to use their services. Each year, you must pay for the Tax Service Provider License (TSPL).
CryptoTrader.Tax’s Hobbyist tier is the most budget-friendly plan for crypto novices and newcomers to the market. The Hobbyist level has a trade limit of 100, meaning that CryptoTrader.Tax will only import and analyze 100 trades from the exchanges you connect to the service.
The cost for the Hobbyist tier is $49, paid once per tax season. – a pretty good deal when you consider that professional accountants can easily charge hundreds or even thousands for this type of work. It’s also a great way to get your feet wet without spending too much.
The Day Trader tier is a significant step up from the Hobbyist level and one of the most popular semi-professional investing tiers. The trade limit is increased to 1,500 trades, which is more than enough for novices and intermediates.
The cost of the Day Trader plan is $99 paid once per tax season.
The High Volume plan is for professional traders and serious investors. The trade limit rises to 5,000 in this level, which includes all of the same outstanding features. The High Volume plan is $199 per tax season paid once.
The last alternative is a serious strategy for professional traders. With the service, you’ll have no limit to how much you can trade. The Unlimited plan is $299 per tax season and also includes all other features that come with the lower tiers.
Which countries can use Cryptotrader.tax?
At this time, CryptoTrader.Tax can only provide tax forms for residents of the United States.
Who is this software for?
The CryptoTrader.Tax service is geared toward intermediate and professional traders, but it also offers a low-cost entry level option for beginners.
Advanced cryptocurrency traders can choose between four price tiers to suit their needs. The Unlimited tier is most suitable for advanced traders who conduct a large number of trades on a daily basis, netting them the largest tax break after Cryptotrader.tax’s fee.
Each plan comes with the appropriate IRS forms to submit your tax return as well as a separate report of your gains and losses.
Which tax reports can you make with Cryptotrader.tax?
Tax rules will be applied to the purchase of Bitcoin and other cryptocurrencies through CryptoTrader.Tax, as well as any profits or losses incurred by Tax users. IRS Form 8949 is a tax form that must be filed with the IRS when submitting a tax return. Users will also get a capital gains statement on their own.
How to use
You can use the CryptoTrader.Tax visiting the site via your web browser. You may create a tax report in minutes by signing up for an account and starting the process right away. The web app connects to various platforms and exchanges, pulling together all of your crypto trade data.
Customer service at CryptoTrader.Tax is adequate as a whole, with live chat support available to all users. All High Volume Trader and Unlimited plan subscribers get priority assistance at all times. You can also tweet @CryptoTraderTax.
You’ll find informative FAQs and troubleshooting sections, as well as an informative blog that will answer all of your crypto questions.
As crypto becomes more popular, the need for tax software like this rises. While cryptotrader.tax is not the only firm on the block, it surely is one of the more prominent and respected crypto tax software products.
Here is a list of other popular crypto tax software that made it on our list.
If you’re looking for ways to automate all of your crypto tax reporting, CryptoTrader.Tax is a more-than-adequate platform. In the age of rampant cryptocurrency trading and endless IRS crackdowns, you want to get it right with your crypto tax reports. This software integrates with all your cryptocurrency platforms — import your transaction history across all platforms and generate tax reports in a click.