• Home
  • /
  • Blog
  • /
  • CryptoTrader.Tax Review: Crypto Taxes Done in Minutes

CryptoTrader.Tax Review: Crypto Taxes Done in Minutes

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Read our Advertising Disclosure.

CryptoTrader.Tax reduces the hassle of preparing cryptocurrency taxes—the CryptoTrader.Tax service seamlessly integrates with cryptocurrency exchanges to produce quick, accurate tax documents for crypto traders.
CryptoTrader Tax logo

Our Partner

Crypto Tax Software

AT A GLANCE

  • Official TurboTax partner
  • Import historical data
  • International tax reporting
  • Over 100,000+ customers
Overall Rating
4.5/5


Leading Crypto Tax Software

Pros & Cons

Even as a successful platform, CryptoTrader.Tax has a few downfalls. Still, the pros outweigh any potential cons.

Pros

  • Integration with crypto wallets and exchanges.
  • Integration with TurboTax
  • Competitive price with multiple tiers
  • Tax-loss harvesting

Cons

  • Can’t directly file the tax return
  • Limited customer support for lower-priced tiers.

With the growth of cryptocurrency, casual hobby traders have often turned into serious investors. However, their success comes with concerns about tax guidelines for crypto assets.

I’ve found that for many people, one of the most complex parts of crypto trading is managing the taxes and paperwork that comes with the business. As a hobby, the paperwork may seem manageable, but with thousands of trades, it can become overwhelming.

Does that sound familiar? Are you struggling to keep up with tax documents for your cryptocurrency trades? 

Thankfully, CryptoTrader.Tax offers a simple tax solution to crypto traders.

In this CryptoTrader.Tax review, I’ll explain why this is my cryptocurrency tax preparation service of choice.

CryptoTrader Tax icon

Quick Summary

Service: Crypto Tax Reports

Price: $49 to $299

Promotion: Get started for Free

About CryptoTrader.Tax

CryptoTrader.Tax is a service that aims to reduce the stress of managing the taxes of your cryptocurrency portfolio. In addition, the service offers integration with several cryptocurrency exchanges and can automatically import your trading data.

Cryptocurrency held as an investment is subject to capital gains tax. Although the IRS classifies Bitcoin and other cryptos as “virtual currencies,” they are not treated the same as traditional currency in terms of taxation.

Many people quickly feel like they are in over their heads when trading increases. Of course, I recommend CryptoTrader.Tax to help get a handle on their tax situations.

CryptoTrader.Tax also features tax-loss harvesting, a process through which you can reduce your overall crypto tax burden.

This service is ideal for serious traders looking to manage crypto taxes and get the greatest possible reduction of their cryptocurrency tax liability. Still, it also offers beginner options perfect for new investors.

Features

CryptoTrader.Tax has many features that make it one of the best bitcoin tax preparer services around.

Below are a few of my favorite aspects.

Exchange Integration

The easy integration with coin exchanges is a huge draw for new customers. CryptoTrader.Tax determines the value of each trade at the time it occurred based on exchange records. 

If you still record data manually, CryptoTrader.Tax can save you time and headaches!

You must know the value of your crypto trade when it took place for accurate tax liability calculation. CryptoTrader.Tax automatically retrieves your trading data from coin exchanges and prepares it for you to review.

Tax-Loss Harvesting

In simple terms, tax-loss harvesting is a process where securities (such as bitcoin) are sold at a loss to offset future tax liability. This option is the most popular method for reducing the tax burden of capital gains.

Because cryptocurrencies are regulated differently by the IRS than traditional currencies, tax-loss harvesting is an effective method for reducing bitcoin tax or your overall crypto tax burden.

CrypoTrader.Tax offers this service on each of their price tiers.

Not all transactions qualify for tax-loss harvesting, but you don’t have to worry about figuring it out yourself—the intelligent analysis through CryptoTrader.Tax manages the process seamlessly.

Comprehensive Reports

If you’re filing taxes using either TurboTax or TaxAct, CryptoTrader.Tax features integration with these services to automatically upload your information. However, I do wish that it were possible to file your return directly from CryptoTrader.Tax.

Whether or not you use TurboTax or TaxAct, Cryptotrader.Tax provides you with Form 8949 and capital gains reports. You can quickly enter the information provided in these forms into the tax preparation software of your choosing.  

Pricing & Plans

CryptoTrader.Tax has four price tiers to open their service to everyone from hobby investors to cryptocurrency trading professionals. Purchase is required once per tax season.

Hobbyist

CryptoTrader.Tax’s Hobbyist tier is their most affordable option. This tier is designed for casual investors or those who are new to crypto. The Hobbyist tier is limited to 100 trades, meaning that CryptoTrader.Tax will only import and analyze 100 trades from the exchanges.

Other features, such as tax-loss harvesting, are available at this tier and each higher level. The cost for the Hobbyist tier is $49, paid once per tax season.

Day Trader

The Day Trader tier is a serious upgrade from the Hobbyist tier and one of the most popular options for semi-casual investors. The trade limit is lifted to include 1.500 trades, which is more than adequate for beginner and intermediate traders.

The cost of the Day Trader tier is $99 paid once per tax season.

High Volume

The High Volume tier is home to professional traders and serious investors. Here, the trade limit increases to 5,000 trades, and comes with all the same great features. The cost of the High Volume tear is $199 paid once per tax season.

Unlimited

This final option is a serious plan for serious traders. The Unlimited tier, as its name implies, does not have a trade limit. So if you’re transacting crypto dozens of hundreds of times per day, the Unlimited tier is the right choice for you.

The Unlimited tier costs $299 paid once per tax season.

FAQ's 

The world of taxes—especially cryptocurrency taxes—can be confusing. Let me answer some common questions about CryptoTrader.Tax, so you aren’t left with any doubts.

Is CryptoTrader.Tax Legit and Safe to Use?

CryptoTrader.Tax is a legitimate business that aims to simplify the process of managing crypto taxes. The company is based in Kansas City, MO and adheres to USA laws and regulations.

Which Countries Does CryptoTrader.Tax Calculate Taxes For?

At this time, CryptoTrader.Tax can only produce the appropriate tax forms for individuals living in the United States of America.

Is CryptoTrader.Tax Suitable for Beginners?

Yes, CyptoTrader.Tax is something that beginners can access. Their Hobbyist tier, priced at $49, offers an affordable entry point for new traders.

Which Tax Reports can You Make with CryptoTrader.Tax?

CryptoTrader.Tax users will receive IRS Form 8949 detailing their short-term and long-term cryptocurrency gains. The IRS requires this form when filing a tax return. Users will also receive a separate capital gains report.

Is CryptoTrader.Tax Legit and Safe to Use?

CryptoTrader.Tax is a legitimate business that aims to simplify the process of managing crypto taxes. The company is based in Kansas City, MO and adheres to USA laws and regulations.

Which Countries Does CryptoTrader.Tax Calculate Taxes For?

At this time, CryptoTrader.Tax can only produce the appropriate tax forms for individuals living in the United States of America.

Is CryptoTrader.Tax Suitable for Beginners?

Yes, CyptoTrader.Tax is something that beginners can access. Their Hobbyist tier, priced at $49, offers an affordable entry point for new traders.

Which Tax Reports can You Make with CryptoTrader.Tax?

CryptoTrader.Tax users will receive IRS Form 8949 detailing their short-term and long-term cryptocurrency gains. The IRS requires this form when filing a tax return. Users will also receive a separate capital gains report.

CryptoTrader Tax Alternatives

Koinly

Koinly logo
  • Tax reports in under 20 minutes
  • Available in 20+ countries
  • Easily import your trades

Coinpanda

Coinpanda logo
  • Reduce your taxes
  • 350+ exchanges and wallets
  • Support for 65+ countries

CoinTracker

Cointracker logo
  • Easily connect all exchanges
  • Instantly generate tax reports
  • Supports over 8,000 cryptos

Who Should Use CryptoTrader.Tax?

Overall, CryptoTrader.Tax is suitable for any cryptocurrency investor. However, the nature of the service gears it more towards serious traders rather than casual users.

The value of services like CryptoTrader.Tax is directly proportional to how deeply you’re invested in cryptocurrency. Casual traders with only a few trades here and there won’t see as much benefit as heavy traders with thousands of transactions.

Recognizing this, CryptoTrader.Tax offers low-cost options for casual traders, making their service affordable to new investors. Anyone who trades in cryptocurrency will find some utility and benefit from a service that reduces tax burden and provides accurate paperwork.

Final Verdict

As explained in our CryptoTrader.Tax review, this service is a reliable, affordable service that simplifies your crypto tax preparation. In addition, the included tax-loss harvesting features ensure that your crypto tax liability is as low as possible.

The CryptoTrader.Tax service is aimed at intermediate and professional investors, though they offer an affordable entry-level option for new investors. Each tier includes the appropriate IRS forms to file your tax return as well as a separate report of your gains and losses.

I would like to see the ability to file a return directly through their service, but their integration with TurboTax and TaxAct makes it easy to import your information.

Direct tax filing aside, CryptoTrader.Tax is hard to beat. So whether you’re a new investor or seasoned professional, use CryptoTrader.Tax to simplify your crypto tax preparation and lower your crypto tax burden.

CryptoTrader Tax

The simplest and most reliable tax software and tax calculator. Get tax reports in minutes. Support for all exchanges. Instant tax forms. Calculate taxes in 20 minutes.

CryptoTrader Tax icon
  • Editor Rating
  • Rated 4.5 stars
  • 80%

  • CryptoTrader Tax
  • Reviewed by:
  • Published on:
  • Last modified: July 26, 2021


You may also like