Best Crypto Tax Software (Don’t Get Audited)
Still trying to calculate your Bitcoin taxes on a spreadsheet? Stop. You will make mistakes, and the IRS will notice. We tested Koinly, CoinTracker, and others to find the tool that keeps you out of jail.
Why “Excel” Doesn’t Work
“I’ll just download the CSV file.” Famous last words.
When you move 1 BTC from Coinbase to your Ledger Wallet, the IRS thinks you SOLD it unless you match the transfers perfectly.
| Task | Manual (Excel) | Software |
|---|---|---|
| Time Required | 40+ Hours | 15 Mins |
| Accuracy | Low (Human Error) | High (API Sync) |
| DeFi / NFTs | Impossible | Supported |
| Cost | $0 (Cost of Sanity) | $50 – $200 |
| User Type | Pick |
|---|---|
| DeFi User | Koinly |
| Coinbase User | CoinTracker |
Detailed Comparison
1. Koinly (The Reviewer’s Choice)
Koinly is like the “Android” of crypto tax. It gives you tons of control. You can see every transaction and fix errors easily.
Pros: Excellent “Free Preview” (you can see your profit/loss before paying). Great support for weird DeFi protocols.
Cons: The UI is a bit dense for total beginners.
2. CoinTracker (The “Apple” Choice)
If you use Coinbase, you’ve seen this. They partner with big exchanges. It is beautiful and simple.
Pros: Seamless integration. The mobile app is a great portfolio tracker.
Cons: Expensive. If you have a lot of transactions, the price jumps to $199+ very quickly.
3. TokenTax (The “White Glove” Service)
Do you have millions in crypto? TokenTax isn’t just software; they have actual CPAs who check your file.
Verdict: Overkill for most, but essential for whales.
Pro Tip: Harvest Your Losses
The software isn’t just for paying taxes; it’s for saving taxes.
The Dashboard Check
Look for the “Unrealized Losses” column. If you see a coin down 90%, sell it before Dec 31st to lock in that loss. The software will calculate exactly how much tax you save.
(Note: It pays for the software subscription instantly).