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TokenTax Review: Should You Use This Crypto Tax Software?

TokenTax is an automated platform that helps you file your crypto taxes. This crypto tax software enables you to reconcile crypto transactions across multiple exchanges and deduce the associated tax implications.

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Our Partner

Crypto Tax Software

AT A GLANCE

  • Connect to crypto exchanges
  • Track trading activity
  • Crypto tax reports
  • Tax loss harvesting
Overall Rating
4.0/5


Best for DeFi Accounting

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Pros & Cons

Pros

  • Easy to use tax software
  • Supports multiple exchanges
  • International support
  • The tax loss harvesting tool is available

Cons

  • The basic plan has few features
  • No free trial

It’s undeniable that cryptocurrencies are now a treasured asset in many people’s financial portfolios. That’s why tax authorities across various jurisdictions treat these digital assets like property. 

If you’re a cryptocurrency investor or trader, you must be aware of the tax liabilities involved.

The process of filing crypto taxes isn’t straightforward. There are so many complexities that might overwhelm even seasoned traders. Fortunately, platforms like TokenTax can ease this process.

But, is TokenTax worth the hype?

This Tokentax review details vital aspects of this bitcoin tax software. We examine its pricing, major features, supported countries, and the tax reports it can generate.

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Quick Summary

Service: Crypto Tax Software

Pricing: $65 to$799 /year

Promotion: No current promotions

About TokenTax

TokenTax is a New Yolk based crypto tax company that was co-founded by Alex Miles and Zac McClure. It began rendering its services at the height of the 2017 crypto boom.

The TokenTax software enables you to calculate taxes based on your crypto gains and losses. This tool automates the entire crypto filing process. You can automatically import data from any crypto exchange and generate forms, like Form 8949, for your return.

If you get stuck at any stage, you can get help from a dedicated team of crypto-accountants. TokenTax works in many countries, meaning you can file crypto taxes in any jurisdiction.

Apart from filing your bitcoin taxes, TokenTax can help you track your capital gains and losses.

Features

TokenTax has several functionalities and tools to meet your tax needs. This TokenTax review takes a closer look at some of these unique features.

Crypto Margin Trading Taxes

Most traders will agree with us that filing taxes on margin trades isn’t always easy. The most challenging part is getting the correct data from exchanges. You can directly contact exchanges, but sometimes they provide information in a different format.

With TokenTax, you can automatically import data from margin trading platforms like Deribit and BitMEX. You only need to connect an API key to the tax software, and it will import your entire trading history.

You can then incorporate this data into your crypto tax calculation.

This feature isn’t available for basic plan users, while premium subscribers only upload transactions from Bybit, Deribit, and BitMEX.

VIP and Pro plan users can upload transactions from any margin trading exchange, including Poloniex.

Cryptocurrency Reports

Below are some of the digital tax reports that you can automatically generate using TokenTax.

IRS Form 8949

TokenTax automatically generates Form 8949 from your cryptocurrency transactions. You can use this form to file your returns or for TurboTax import.

International Gain / Loss Report

This software can generate crypto tax reports from any country.

Audit Trail Reports

Track all your transactions across multiple exchanges using this report.

Cryptocurrency Mining & Income Tax Report

With this report, you can view taxable income from crypto mining, airdrops, and staking.

Tax Loss Harvesting

TokenTax’s tax-loss harvesting feature allows users to sell off digital assets that they hold at a loss.  Disposing of such assets reduces your capital gains liabilities, meaning you save money on your taxes.

Tax Professional Suite

The professional suite benefits crypto accountants and accounting firms. As an accountant, you can import your client’s data and calculate their digital assets taxes.

Pricing & Plans

TokenTax has several pricing tiers to suit different investors and traders. Unfortunately, this tax software doesn’t offer free trials.

Before picking a plan, you have to decide whether you want to perform crypto tax calculations or your entire tax filing. Here are the available tiers.

Plans

Price (per year)

Basic

$65

Premium

$199

Pro

$799

Basic Account - $65 Per Tax Year

The cheapest TokenTax plan costs $65 per year. The main features of this account include:

  • Up to 500 annual transactions
  • TurboTax integration
  • Unlimited tax form revisions
  • Can generate international tax reports and Form 8949 (IRS)
  • Live chat support

The entry-level account is very limited. It only supports Coinbase, Binance, and Coinbase Pro. If you use other exchanges, you’ll need to upgrade your account.

Premium Account - $199 Per Tax Year

Unlike the basic plan, the premium account supports every crypto exchanger. You have to pay $199 to use this account.

All the basic account features are available to premium users.

Other key features are:

  • Up to 5000 annual transactions
  • Tax-loss harvesting tool
  • DeFi integration
  • Supports margin trading (Bybit, BitMEX, and Deribit)

Pro Account - $799 Per Tax Year

The pro account is ideal for margin traders and advanced investors. You’ll have to fork out $799 per year to access this account.

Its key features include:

  • Up to 20,000 transactions
  • FBAR support
  • DeFi automated integration
  • Supports all margin exchanges

The pro account also offers all features available in the premium plan.

VIP Account - $2599 Per Tax Year

The VIP plan suits high net worth investors who trade heavily. This plan gives users access to all TokenTax functionalities.

Some of its essential features include:

  • Up to 30000 annual transactions
  • Dedicated sessions with tax experts
  • Advanced cryptocurrency reconciliation
  • IRS audit assistance

Full Tax Filing

TokenTax also offers a full-fledged tax filing service. You can opt for this service if you want TokenTax to handle all your tax responsibilities.

The pricing is as follows.

  • Bronze - $699 per year
  • Silver - $999 per year
  • Gold - $3000 per year

FAQ's

TokenTax is a legitimate crypto tax software that’s well-known in the crypto industry. All the information in this site runs through TLS encryption, making it a safe platform to use.

You don’t need to provide personal information when using TokenTax. During registration, you only provide your name and email address.

Which Countries Does TokenTax Calculate Taxes For?

You can generate crypto tax reports for any country using TokenTax. You can use any currency to generate these reports.

Is TokenTax Suitable for Beginners?

TokenTax isn’t a suitable crypto tax software for beginners. Its entry-level plan is too limited to benefit crypto greenhorns. Any beginner who doesn’t use Coinbase or Binance won’t generate tax reports using the basic plan.

Beginners can benefit from this platform if they upgrade to higher tiers. These plans support all crypto exchanges, automatically generate bitcoin tax reports, and offer tax assistance.

What Tax Reports Can You Make with TokenTax?

TokenTax can help you generate tax reports like IRS Form 8949, International Gain / Loss Report, Audit Trail Report, Cryptocurrency Mining, and Income Tax Report.

TokenTax Alternatives

Koinly

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

CryptoTrader Tax

CryptoTrader Tax logo
  • Official TurboTax partner
  • International tax reporting
  • Import historical data

Coinpanda

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

Who Should Use TokenTax?

According to our TokenTax review, this crypto tax software is ideal for intermediate and professional crypto traders/investors. It may suit crypto miners, DeFI users, accountants, and crypto organizations.

If you trade or hold currencies across multiple exchangers, TokenTax is the perfect tool to help you file your bitcoin tax.

Users who need an expert opinion on crypto taxes might also benefit from TokenTax. The company has a knowledgeable CPA counsel that can help you.

Final Verdict

TokenTax is among the best crypto tax software for experienced cryptocurrency traders and investors.

It works with multiple exchanges, is available worldwide, provides CPA assistance, and automates your bitcoin tax filing.

If you have a complex mix of digital assets in your portfolio, you should consider using this tool to file your taxes. Sign up today at TokenTax and ease your crypto tax preparation.

TokenTax

TokenTax is the only cryptocurrency tax calculator that connects to every crypto exchange.

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  • Editor Rating
  • Rated 4 stars
  • 80%

  • TokenTax
  • Reviewed by:
  • Published on:
  • Last modified: July 24, 2021


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