Learn How To File Crypto Taxes

Learn How To File Crypto Taxes

Are you a crypto enthusiast who's feeling bogged down by the complexities of filing taxes on your digital assets? Fear not, because we've got everything you need to know about navigating the world of crypto taxes in one handy guide. From understanding how taxation works with cryptocurrencies to easy-to-use software that will get your crypto filed in minutes.

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The Best Softwares To File Your Crypto Taxes

Are you in a hurry? Read our key highlights here

The Top 4 Softwares to file your Crypto Taxes with Ease.

Koinly: Available in 20+ countries and reports are ready in 20 minutes.

CoinTracker: Available in 100+ countries and is backed by VC's.

CoinLedger: Has over 400,000 customers with international support.

ZenLedger: Good platform for U.S. customers only.

Disclosure: To keep our content FREE our website is supported by our users. We may receive a commission if you click through and deposit funds with a broker or exchange. Read the full affiliate disclosure.

So grab your calculator and let's dive into Crypto Taxes 101!

Do I Need to Pay Crypto Taxes?

The short answer is: it depends.

There are a few things to consider when wondering if you need to pay taxes on your cryptocurrency earnings. For example, how did you acquire the crypto? If you purchased it, then you may not need to pay taxes on it. However, if you mined the crypto or received it as payment for goods or services, then you will most likely need to pay taxes on it.

Another thing to consider is what type of cryptocurrency it is. Bitcoin and other similar cryptocurrencies are considered property by the IRS and are subject to capital gains tax. Ethereum and other altcoins are not currently considered property, but this could change in the future. So, if you're holding Ethereum, you probably won't owe any taxes on it right now, but that could change.

Lastly, where are you located? Different countries have different rules when it comes to the taxation of cryptocurrency. Some countries don't tax cryptocurrency at all, while others treat it like income or capital gains. So, depending on where you live, you may or may not need to pay taxes on your cryptocurrency earnings.

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If you're still not sure if you need to pay taxes on your cryptocurrency earnings, we recommend talking to a tax professional. They can help you figure out if you owe any taxes and how much you might owe.

Top 4 Software for Filing Crypto Taxes

If you're like most people, you probably don't think about your taxes until it's time to file them. And if you're like most people, you probably don't think about filing your taxes on cryptocurrency holdings until the IRS comes knocking at your door.

The good news is that there are a number of software programs available that can help you file your crypto taxes. The bad news is that there are so many options out there, it can be tough to know which one is right for you.

To help you out, we've put together a list of the top 5 softwares for filing crypto taxes. Whether you're looking for something simple and straightforward or something with more bells and whistles, one of these options should be a good fit for you.

Editors Top Choice: Koinly

Koinly

Koinly is a crypto tax software that helps you calculate your gains and losses from cryptocurrency transactions. It supports all major exchanges and wallets and allows you to import your data from CSV or JSON files. Koinly also provides a range of reports, including a capital gains report, an income report, and a transaction history report.

Integrates with 300+ exchanges, 70+ wallets, 170+ Blockchains and more.
The free option does not include tax reports.
Produces Crypto Tax reports in 20 minutes.
Email support is only for the most expensive plan.
User-friendly software and produces advanced reports.

CoinTracker

Cointracker is a crypto tax software that allows users to track their cryptocurrency investments and calculate their taxes owed. The software is designed for both individual and institutional investors, and offers a variety of features to make tax filing easy and efficient. Cointracker is developed by a team of experienced tax professionals and blockchain engineers, and is backed by leading VC firms.

Android and iOS options are available
The free plan is limited.
100+ countries supported
Android and iOS options are available
Email support is not available on free plan.

CoinLedger

CoinLedger is a crypto tax software that was created by a team of experienced tax professionals. Formerly CryptoTrader.Tax, the software has over 400,000 customers and is designed to help users file their taxes on time and accurately. It also provides users with tips on how to save money on their taxes.

Integrates with most cryptocurrency exchanges.
Although they produce crypto tax reports, they do not accept crypto themselves as payment.
International support.
Only supports DeFi exchanges with higher plans.
Free portfolio tracking.

ZenLedger

Zen Ledger is crypto tax software that helps users calculate their taxes owed on their cryptocurrency investments. The software is designed to be easy to use, and offers a variety of features to help users get the most accurate tax calculation possible. Zen Ledger also offers a free trial so that users can try out the software before they purchase it.

Integrates with most cryptocurrency exchanges.
Only for U.S. customers
Includes tax-loss harvesting.
More expensive than other competitors.
Excellent customer support.

Crypto Taxes FAQ

Is crypto tax software free?

Yes and No, most softwares offer free plans however in order to get the tax report you need, you will need to pay. Generally, they start from $39 per year.

**Investing in Stocks: A Beginner's Guide (200 words)**

Investing in stocks is a popular choice for many investors. You don't need a lot of money to start investing in stocks. Many brokerage accounts have no minimums, and many stocks and ETFs can be bought for a relatively low price. When choosing stocks to invest in, it's important to research the company and understand what you're investing in.

**Understanding Different Asset Classes (200 words)**

There are several different asset classes you can invest in, including stocks, bonds, real estate, and cash. Each asset class has different levels of risk and return potential. The investment risk ladder is a tool that can help you understand the risk associated with different asset classes.

**Learning Resources for Beginner Investors (100 words)**

There are numerous resources available to help beginner investors learn more about investing. Some of the best investing books for beginners include “The Intelligent Investor” by Benjamin Graham and “A Random Walk Down Wall Street” by Burton Malkiel. The Investing for Beginners Podcast is another great resource that provides easy-to-understand information on various investing topics.

**Conclusion (100 words)**

Investing is a journey, and like any journey, it begins with a single step. This guide provides you with the basic knowledge you need to take that first step. Remember, the goal of investing is not to get rich quick but to grow your wealth over time. So, take your time, do your research, and make informed decisions. Happy investing!

**External Links:**

1. [Investment Terms](https://www.investopedia.com/terms/)

2. [SEC's Guide for Beginners](https://www.investor.gov/introduction-investing/investing-basics)

3. [Investing Tools and Calculators](https://www.finra.org/investors/tools-calculators)

Do I need a crypto accountant?

The question is more, if you get audited do you have the answers they will be looking for. If you invest in DeFi do you know your tax liabilities? If you've used a collapsed exchange (i.e. Celsius) do you know the tax rules? Maybe you've had your crypto stolen, do you know the correct procedure to claim a capital loss? The list continues….. Only you can decide what is right for you.

**Investing in Stocks: A Beginner's Guide (200 words)**

Investing in stocks is a popular choice for many investors. You don't need a lot of money to start investing in stocks. Many brokerage accounts have no minimums, and many stocks and ETFs can be bought for a relatively low price. When choosing stocks to invest in, it's important to research the company and understand what you're investing in.

**Understanding Different Asset Classes (200 words)**

There are several different asset classes you can invest in, including stocks, bonds, real estate, and cash. Each asset class has different levels of risk and return potential. The investment risk ladder is a tool that can help you understand the risk associated with different asset classes.

**Learning Resources for Beginner Investors (100 words)**

There are numerous resources available to help beginner investors learn more about investing. Some of the best investing books for beginners include “The Intelligent Investor” by Benjamin Graham and “A Random Walk Down Wall Street” by Burton Malkiel. The Investing for Beginners Podcast is another great resource that provides easy-to-understand information on various investing topics.

**Conclusion (100 words)**

Investing is a journey, and like any journey, it begins with a single step. This guide provides you with the basic knowledge you need to take that first step. Remember, the goal of investing is not to get rich quick but to grow your wealth over time. So, take your time, do your research, and make informed decisions. Happy investing!

**External Links:**

1. [Investment Terms](https://www.investopedia.com/terms/)

2. [SEC's Guide for Beginners](https://www.investor.gov/introduction-investing/investing-basics)

3. [Investing Tools and Calculators](https://www.finra.org/investors/tools-calculators)

What's my local country's law on crypto taxes?

**Investing in Stocks: A Beginner's Guide (200 words)**

Investing in stocks is a popular choice for many investors. You don't need a lot of money to start investing in stocks. Many brokerage accounts have no minimums, and many stocks and ETFs can be bought for a relatively low price. When choosing stocks to invest in, it's important to research the company and understand what you're investing in.

**Understanding Different Asset Classes (200 words)**

There are several different asset classes you can invest in, including stocks, bonds, real estate, and cash. Each asset class has different levels of risk and return potential. The investment risk ladder is a tool that can help you understand the risk associated with different asset classes.

**Learning Resources for Beginner Investors (100 words)**

There are numerous resources available to help beginner investors learn more about investing. Some of the best investing books for beginners include “The Intelligent Investor” by Benjamin Graham and “A Random Walk Down Wall Street” by Burton Malkiel. The Investing for Beginners Podcast is another great resource that provides easy-to-understand information on various investing topics.

**Conclusion (100 words)**

Investing is a journey, and like any journey, it begins with a single step. This guide provides you with the basic knowledge you need to take that first step. Remember, the goal of investing is not to get rich quick but to grow your wealth over time. So, take your time, do your research, and make informed decisions. Happy investing!

**External Links:**

1. [Investment Terms](https://www.investopedia.com/terms/)

2. [SEC's Guide for Beginners](https://www.investor.gov/introduction-investing/investing-basics)

3. [Investing Tools and Calculators](https://www.finra.org/investors/tools-calculators)

How do cryptocurrency taxes work?

They are very similar to gold and real estate. When you sell and trade you have to pay taxes on the difference minus the exchange fees. Also known as Capital Gains tax which has to be paid in the U.S., UK, Canada and more.

**Investing in Stocks: A Beginner's Guide (200 words)**

Investing in stocks is a popular choice for many investors. You don't need a lot of money to start investing in stocks. Many brokerage accounts have no minimums, and many stocks and ETFs can be bought for a relatively low price. When choosing stocks to invest in, it's important to research the company and understand what you're investing in.

**Understanding Different Asset Classes (200 words)**

There are several different asset classes you can invest in, including stocks, bonds, real estate, and cash. Each asset class has different levels of risk and return potential. The investment risk ladder is a tool that can help you understand the risk associated with different asset classes.

**Learning Resources for Beginner Investors (100 words)**

There are numerous resources available to help beginner investors learn more about investing. Some of the best investing books for beginners include “The Intelligent Investor” by Benjamin Graham and “A Random Walk Down Wall Street” by Burton Malkiel. The Investing for Beginners Podcast is another great resource that provides easy-to-understand information on various investing topics.

**Conclusion (100 words)**

Investing is a journey, and like any journey, it begins with a single step. This guide provides you with the basic knowledge you need to take that first step. Remember, the goal of investing is not to get rich quick but to grow your wealth over time. So, take your time, do your research, and make informed decisions. Happy investing!

**External Links:**

1. [Investment Terms](https://www.investopedia.com/terms/)

2. [SEC's Guide for Beginners](https://www.investor.gov/introduction-investing/investing-basics)

3. [Investing Tools and Calculators](https://www.finra.org/investors/tools-calculators)

Are there crypto tax-free countries?

If you're looking for a crypto tax haven you could try Germany, Belarus, El Salvador or Portugal. There are actually 11 countries you could choose from, find the full list here.

**Investing in Stocks: A Beginner's Guide (200 words)**

Investing in stocks is a popular choice for many investors. You don't need a lot of money to start investing in stocks. Many brokerage accounts have no minimums, and many stocks and ETFs can be bought for a relatively low price. When choosing stocks to invest in, it's important to research the company and understand what you're investing in.

**Understanding Different Asset Classes (200 words)**

There are several different asset classes you can invest in, including stocks, bonds, real estate, and cash. Each asset class has different levels of risk and return potential. The investment risk ladder is a tool that can help you understand the risk associated with different asset classes.

**Learning Resources for Beginner Investors (100 words)**

There are numerous resources available to help beginner investors learn more about investing. Some of the best investing books for beginners include “The Intelligent Investor” by Benjamin Graham and “A Random Walk Down Wall Street” by Burton Malkiel. The Investing for Beginners Podcast is another great resource that provides easy-to-understand information on various investing topics.

**Conclusion (100 words)**

Investing is a journey, and like any journey, it begins with a single step. This guide provides you with the basic knowledge you need to take that first step. Remember, the goal of investing is not to get rich quick but to grow your wealth over time. So, take your time, do your research, and make informed decisions. Happy investing!

**External Links:**

1. [Investment Terms](https://www.investopedia.com/terms/)

2. [SEC's Guide for Beginners](https://www.investor.gov/introduction-investing/investing-basics)

3. [Investing Tools and Calculators](https://www.finra.org/investors/tools-calculators)

What are the worst crypto tax countries?

Not everywhere is Crypto tax-friendly, especially France, The Netherlands and Japan. You can find more details about all the countries with high taxes here.

Learn how to file your crypto taxes: The Bottom Line

When it comes to filing crypto taxes, knowledge is power. By staying informed and handling crypto tax matters proactively, you can remain compliant while avoiding potential fines and penalties. We hope this article has given you the insight you need to confidently approach filing your crypto taxes. With a little bit of preparation and research, understanding crypto taxation doesn’t have to be difficult or overwhelming – so don't wait until the last minute! Get started now and make sure that come tax time, you are ready for success.

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