Crypto Tax Software: Manage Bitcoin and Other Digital Currencies

This year, you need to report income and investment gains from cryptocurrency when you file your taxes. These tax-filing apps streamline the process.

Cryptocurrencies like bitcoin and ethereum are no longer relegated to the financial fringes: More than $50 million in crypto donations have flowed to Ukraine after Russia's invasion, and 16% of Americans have traded crypto, according to Pew Research. 

And this tax season, the IRS wants to know about your crypto transactions.

In 2014, the tax agency clarified that virtual currencies should be treated as property for federal income tax purposes. 

Just as profits on stock sales are taxed as capital gains, so are profits from crypto sales.

Unlike conventional brokerages, crypto exchanges are not required to provide 1099 or other tax forms -- though many are offering these forms up this tax filing season. 

If you don't receive a tax form for your crypto, you'll need to track all of your income and transactions yourself and calculate losses and gains for your tax return.

The reporting requirements for crypto exchanges will change soon. 

Last year's Infrastructure Bill redefines all such exchanges as "brokers" and requires them to start reporting 1099 forms starting in 2024. 

Sound complicated? Enter crypto tax software -- it connects to crypto exchanges to make reporting your crypto transactions on your tax return easier. 

They won't necessarily file your taxes for you, but they will sync up with popular tax filing software like TurboTax, H&R Block and Cash App Taxes and make navigating the complicated details of Form 8949 a little easier.

CoinTracker is one of the crypto data tracking products making noise in 2022. In January, CoinTracker announced it was partnering with CoinBase to simplify tracking taxable cryptocurrency activity for CoinBase users. 

TurboTax has also recently teamed with CoinTracker to let its users import crypto transactions.

CoinTracker integrates with more than 300 crypto exchanges and wallets to automatically track your cryptocurrency holdings, sales and transfers. 

The CoinTracker site boasts that it tracks 3% of the global crypto market, equaling about $50 billion of crypto assets.

Like most of the products in the collection, CoinTracker will create IRS Form 8949 for you and assist with various IRS schedules related to crypto income from airdrop or hard forks.

CoinTracker based its pricing on your number of crypto transactions. 

If you have 25 or fewer transactions, it's free. A Hobbyist plan starts at $60 and includes up to 100 transitions. 

The Premium plan adds up to 1,000 transactions and starts at $200.

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