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Use the calculator to help figure out your crypto tax liability
Whether you're a serious cryptocurrency trader or investor, or just hold a few thousand dollars in cryptocurrency, managing your cryptocurrency holdings and annual taxes can be a nightmare. Regulations vary from country to country, but in the U.S., the IRS has issued limited and sometimes conflicting information on how to treat cryptocurrencies in relation to personal tax burdens.
You may have received tax documents from any cryptocurrency exchange or trading platform you have used. This information may or may not be current or accurate, so it is important to know exactly how the IRS views cryptocurrencies.
According to the IRS website, "Virtual currency is considered property, and the general tax principles that apply to property transactions apply to transactions using virtual currency."
Additionally, the IRS states: "When you sell virtual currency, you must recognize any capital gain or loss on the sale, subject to any restrictions on capital loss deductions." For less than a year, you are usually responsible for paying short-term capital gains taxes, and if you hold cryptocurrencies for more than a year, you are usually liable for long-term capital gains taxes.
Unlike someone who invests in cryptocurrencies, if you receive cryptocurrencies as compensation for a full-time job or independently contracted services, it will be considered ordinary income.
All of this may seem confusing, but luckily, there are a variety of free and easy-to-use calculators that will allow you to figure out your cryptocurrency tax liability.
In this article, we'll review the top 5 crypto tax calculators, their features, and pricing options so you can make an informed choice about the product that best suits your individual needs. Note that these calculators are only for investors and traders residing in the United States.
Table of contents
Table of contents
TaxAct - Bitcoin Tax Calculator
ZenLedger
TokenTax
CoinTracker
Crypto Tax Calculator
Crypto Tax Calculators and Information - Non-US Investors and Traders
TaxAct - Bitcoin Tax Calculator
TaxAct Bitcoin Tax Calculator is one of the easiest to use free crypto tax calculators online. The calculator is primarily aimed at Bitcoin investors, but can also be used by investors holding any coin or cryptocurrency. However, this may not be the best for those using more advanced crypto investing methods such as liquidity mining.
Inputs provided by the calculator include:
tax filing status
Taxable income, excluding profits from cryptocurrency sales
User's state tax rate
Every cryptocurrency sale during the relevant tax year
Cryptocurrency purchase data and purchase prices
Cryptocurrency Sale Dates and Sale Prices
Crypto Tax Calculator
Crypto Tax Calculator is a specialized product that provides you with tax calculator services tailored to you through its custom app. The platform is ideal for more advanced crypto investors as it can perform accurate tax calculations for a variety of more complex tax situations, including gas fees, leveraged transactions, staking rewards, mining, airdrops, DeFi loans, and DEX transactions . The platform currently integrates with all major exchanges and covers the buying and selling of NFTs. It also allows the export of IRS Form 8949 and integrates with TurboTax.
The crypto tax calculator has over 400 integrations, over 60,000 users, and has reportedly been used in over 120 million transactions. It also offers an enterprise edition for businesses, accountants, and accounting firms.
Unlike many calculators, the crypto tax calculator is not free. It offers four pricing options, including:
Rookie: $49 per year, supports 100 transactions, and is mainly designed for beginner investors using centralized exchanges such as Coinbase or Kraken.
Hobbyist: $99 per year, supports 250 transactions, also mainly for beginners using centralized exchanges.
Investor: $189 per year, supports 10,000 transactions, and allows for more complex transactions, including DEX transactions, crypto derivatives, staking, and DeFi transactions.
Trader: $299 per year, supports 100,000 trades, for advanced daily traders. This option includes all the advanced features of the investor plan.
ZenLedger
Crypto Tax Calculator comes with a 30-day money-back guarantee.
ZenLedger is another great option for a cryptocurrency tax calculator. The product can directly connect to more than 500 cryptocurrency exchanges and wallets, 20+ DeFi protocols, and 40+ blockchains, and provides simple import options, and can also import wallets that support non-direct connections and via API or CSV files. exchange.
The calculator will calculate information such as fair market value, cost basis, and your profit and loss for a specific time period.
Like the crypto tax calculator mentioned above, ZenLedger supports more complex tax calculations for cryptocurrency and DeFi transactions, such as staking, gifts, mining and exchange rewards such as forks and airdrops.
The service automatically populates a variety of reports (much more than other products), including standard IRS Form 8949, Fincen 114/FBAR D, Schedule 1, Tax Loss Collection Documents, and Grand Consolidated Accounting Reports. Like the Crypto Tax Calculator, ZenLedger offers a direct import feature via TurboTax.
ZenLedger offers four plans including:
Free: Free, up to 25 transactions, and most of the main features of the product are also free, including tax expert access, audit reports, HIFO/FIFO/LIFO, FinCen/FBAR alerts, mining and donations, ICO and airdrops, taxes Loss Harvesting and integration with TurboTax.
Starter: $49 per year, supports up to 100 transactions, has all the features of the free plan.
Premium: $149 per year, supports up to 5,000 transactions, with additional support for DeFi products, staking, and NFTs.
Executive: $399 per year, supports unlimited transactions, and additionally supports DeFi products, staking, and NFTs.
TokenTax
Like many other calculators, ZenLedger offers professional suites for accountants and CPAs, and 24/7 live chat, email, and phone support for this service.
TokenTax is both a crypto tax calculator service platform and a full-service crypto tax accounting company, unlike other companies that only provide calculators and DIY products. Unlike many other crypto tax calculator platforms, TokenTax supports taxes in all countries around the world, with a special focus on providing accurate tax calculations in countries like Japan, Canada, South Africa, Australia, Sweden, and the UK.
TokenTax claims to be the only crypto tax calculator connected to each exchange, although several other calculators also make this claim. In addition to the calculator service, TokenTax also offers a real-time dashboard that allows users to track their tax obligations, as well as capital gains and losses on all transactions.
It also provides an interactive tax loss collection dashboard to help users understand their unrealized gains and losses, making it easier for users to know when and how much their crypto assets are sold to reduce their overall tax burden. Like ZenLedger and Crypto Tax Calculator, TokenTax can be easily imported into TurboTax.
TokenTax offers three levels of pricing, including:
Basic: $65 per tax year, up to 500 transactions, offers TurboTax integration for IRS Form 8949 or international reporting, plus unlimited tax form revisions, and supports live chat.
Premium: $199 per tax year, up to 5,000 transactions, provides all the features of Basic, plus support for all exchanges, automatic integration of NFT and DeFi protocols, support for all exchanges, tax loss collection dashboard, And supports BitMEX, Deribit and Bybit margin.
CoinTracker
Pro: $799 per tax year, up to 20,000 trades, supports all margin trades and FBAR filings.
CoinTracker is another premium cryptocurrency tax calculator and tax platform. Like TokenTax, it offers an automated portfolio tracking service that allows users to view their portfolio allocations, market value and investment performance in real time across various exchanges and platforms. The platform currently integrates over 8,000 cryptocurrencies and over 300 exchanges.
It should be noted that CoinTracker is more of an investment tracking platform, with a slightly less focus on tax reporting than other products we reviewed.
Like many other paid crypto tax platforms, CoinTracker powers CPAs, allowing them to easily create tax reports based on client transactions through forms such as Schedule 1, Schedule D, Capital Gains Statement, and IRS Form 8949. All CoinTrakcer products come with a 30-day money-back guarantee.
CoinTracker offers pricing options including:
Free: Free up to 25 trades per year, with base cost and capital gain calculations, error checking and forum support.
Hobbyist: $59 per year, up to 100 deals, offers all the features of the Free plan.
Premium: $199 per year, up to 100 trades, offers all the features of the Free plan, plus margin trading, DeFi features, wallet tax rollup, and email support.
Unlimited: Priced separately, offers all the features of Free and Premium, plus concierge support and customization.
Crypto Tax Calculator and Information for Non-US Investors and Traders
Below, we provide links to some crypto tax calculators and guides for those living outside of the US:
UK: Check out this list of crypto tax calculators for UK citizens and residents, courtesy of Bitcourier. Tax also has an excellent guide to UK crypto taxation here.
Canada: Coinpanda and Koinly offer high-quality crypto tax calculators for Canadian citizens and residents. Here is the official Canadian government tax guide for cryptocurrency investors.
Australia: Koinly also offers a crypto tax calculator for Australian citizens and residents. His Australian crypto tax calculator includes products from com, swyfx and fullstack
New Zealand: Coinpanda and Koinly also offer crypto tax calculators for New Zealand citizens and residents.
In addition to Canada, Australia, and New Zealand, Koinly provides crypto tax calculators and advice for many other countries, including France and Spain. For citizens or residents of countries not mentioned here, there are various guides online to address the crypto taxation situation in your country.
Please note that the authors of this article are not tax professionals and nothing contained herein should be considered tax or financial advice. This article is for informational purposes only. For advice on your specific tax situation, please contact a licensed tax professional in your jurisdiction.
Related Reading:
(2021, Jun.) Frequently Asked Questions on Virtual Currency Transactions. IRS: Internal Revenue Service.
Bitcoin Tax Calculator.
CryptoTaxCalculator.
Simplifying DeFi, NFT, and Crypto Taxes for Investors and Tax Professionals.
Calculate your crypto taxes and file your return.
Track your crypto portfolio & taxes.
Best Bitcoin Tax Calculator in the UK.
Kemmerer, D. (2021, Sept.) UK Crypto Tax Guide (2021). Tax.
(2021, Jun.) Guide for cryptocurrency users and tax professionals. Government of Canada.
Bitcoin Tax Calculator for Canada.
The Australian crypto tax report calculator. com
Crypto Tax Calculator Australia.
Crypto Tax Calculator.
