If you’re one of the 16% of Americans who bought, sold, or traded cryptocurrencies last year, you’re definitely worried about the April 18th deadline for filing your taxes. And if you’re an NFT devotee who altered your Twitter profile photo to a hexagonal, casual monkey, you’ll probably need some help when it comes to filing.
The Internal Revenue Service in the United States is expected to scrutinise, if not audit, anyone who used virtual money this year. TechCrunch spoke with Alex Roytenberg, also known as “TheNFTCPA” on Twitter.
“I believe the IRS was anticipating a large year of wealth and income generation, and 2021 was unquestionably that year,” Roytenberg said.
If you’re one of the 16% of Americans who bought, sold, or exchanged cryptocurrency last year, you’re probably concerned about the April 18th tax deadline. And if you’re an NFT fan who changed your Twitter profile photo to a hexagonal, casual monkey, you’ll most likely need some assistance with filing.
Anyone who used virtual money this year is expected to be scrutinised, if not audited, by the Internal Revenue Service in the United States. Alex Roytenberg, better known as “TheNFTCPA” on Twitter, spoke with TechCrunch.
“I believe the IRS was anticipating a significant year of wealth and income development, and 2021 was without a doubt that year,” Roytenberg said.
While Roytenberg advises crypto traders to seek expert, one-on-one tax guidance to clarify any ambiguities, he also spoke with TechCrunch about a variety of crypto tax prep programmes that may be useful this year.
Here’s a breakdown of some of the more popular crypto tax filing tools currently available.
Koinly
Koinly is without a doubt the most feature-rich bitcoin tax software on the market. This application can not only generate accurate reports, but it also offers a number of features that can assist you in avoiding paying more than is really necessary. The automated data import is the first useful feature you should be aware of. It is doubtful that any transaction records will fall through the cracks because it integrates with so many exchanges and wallets. After you’ve imported the data, you’ll be able to follow every fee and reconcile the information on your report and exchanges in just a few clicks. Advanced transaction screening is also available.
It can be used to quickly identify which transactions have generated the most profits and to generate balance notifications. Not only does it have plenty of options, enabling you to complete your taxes yourself in the most efficient way possible, but it’s also fairly priced. Its free plan allows for up to 10,000 transactions per month. It will not, however, let you export your bitcoin tax reports for free. You’ll need to sign up for one of Koinly’s subscription plans, which start at $49 for up to 100 transactions, $99 for up to 1,000 transactions, $179 for up to 3,000 transactions, and $279 for more than 10,000 transactions.
Tools for top-notch error reconciliation
•Importation of data is automated.
•Connects you with tax specialists from five countries.
CryptoTrader.Tax
CryptoTrader.Tax is a fantastic crypto tax calculator that will help you crunch all of the statistics for your crypto dues and put them into reports that you can file with the IRS. It will cover all of the paperwork you might require. You can also easily create the IRS 8949 form, short and long-term sales records, cryptocurrency revenue reports, foreign gain/loss reports, and other documents.This useful tax programme also includes tax-loss harvesting, which is a really useful function. CryptoTrader.Tax is simple to use and provides extremely accurate statistics. It works with TurboTax and TaxDirect, as well as over a hundred cryptocurrency exchanges and the most popular wallets.
This calculator is quite inexpensive, and you may try it out for free. You’ll need to sign up for one of the company’s price tiers if you want to see or download your reports; the most basic, called Hobbyist, costs $49 per tax year. Day Trader is the next category, which costs $99 each tax year for 1,500 transactions, and High Volume is $199 per tax year for 5,000 trades. If you trade more than that, the Unlimited plan, which starts at $299 per tax year, may be the best option.
•Affordable; simple crypto tax calculator; excellent integrations
•Easy-to-use crypto tax calculator
•Fantastic integrations
TokenTax
TokenTax is another amazing piece of crypto tax software you can trust with your finances. This programme can help you with a wide range of cryptocurrency tax reports, including IRS Form 8949. It can also assist you with cryptocurrency income tax, cryptocurrency audit trails, and foreign gain/loss reporting. It can also assist with tax loss harvesting and margin trading, just like many of the other solutions on this list. The fact that TokenTax provides crypto tax services makes it separate from the competitors. Its programme, as well as its cryptocurrency, may be trusted.
This group can also assist you with any tax-related task; all you have to do is contact them. Unfortunately, there is no free trial available. Start with the Basic plan, which costs $65 per tax year for up to 500 transactions, or upgrade to Premium ($199 per tax year; up to 5,000 transactions), Pro ($799 per tax year; up to 20,000 transactions), or VIP ($3,499 per tax year; up to 30,000 transactions).
Excellent customer service.
•A wide range of integration options
• International trade financial assistance
