TaxBit Review: The Best Cryptocurrency Tax Program

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TaxBit Makes Cryptocurrency Taxes Easy $0+
taxbit review

Name: TaxBit

Description: TaxBit is an industry leading cryptocurrency software. It generates all required tax forms for filing with the USA IRS.

Offer price: 0.0

Currency: USD

Operating System: Windows, OSX

Application Category: Crypto Tax Software

Author: Matthew Hickey

4.5

TaxBit is THE Best Cryptocurrency Tax Software

Features 4/5
Compatibility with all exchanges, thousands of cryptocurrencies and automatic integration all combine to satisfy the accounting needs of 80% of crypto investors. Few, if any, cryptocurrency investors will be left out having to do accounting and tax by hand.
Ease of Use 5/5
It doesn’t get simpler than this. Simply provide API access to each exchange and enter wallet address to automatically log transactions, maintain cost-basis.
Reliability 5/5
Taxbit has been around for several years, has responsive support and virtually zero downtime.

  • Features
  • Ease of Use
  • Reliability

Pros

Pros
+ Best for people who invested in Cryptocurrency on exchanges
+ Industry leading accuracy
+ Generates required tax forms
+ Tax Optimizer can reduce tax liabilities
+ Easy to use and update
+ Simple integration with a variety of platforms, exchanges, and cryptocurrencies.
+ Constantly being upgraded to provide

Cons

Cons
– No hardware wallet support (yet)
– Limited DeFi support (will probably be added in the future!)
– No option for manually labelling stolen/lost transactions
– Limited expert/enthusiast feature support for those with multiple hardware wallets, exchanges, etc. (this is bound to become better integrated over time)

Sending
User Review
5 (1 vote)

TaxBit Review 2022: Best Value and Ease of Use

Tax regulations for cryptocurrency are continually evolving. In the United States of America they are becoming more fleshed out, but still leave much to the interpretation of the investor. This leaves many investors struggling to clearly interrupt and apply the tax code to the fullest advantage.

Cryptocurrency Accounting is Difficult

The IRS considers any transaction, such as buying, selling or transferring cryptocurrency, as a taxable event. To save thousands of investors from headaches, TaxBit was created to simplify the process and save investors money on taxes. Without the use of specialized software or a specialized accountant, investors could be left with higher tax liabilities.

In this Taxbit Review, we review the features that make crypto accounting easier than ever with one program.

crypto accounting app 2022
Taxbit manual transaction adding.

Top Reasons to Use TaxBit 2022

Exchange Generated IRS Forms are Typically Incorrect

Most exchanges provide 1099-K reporting income to the IRS. The form only states income. For instance if you buy $10,000 of Bitcoin at $10,000/BTC then sell at $9,000/BTC, this $1,000 loss is actually reported as $9,000 of income on the 1099-K. See how this would lead to tax issues? This would result in an incorrect tax bill because the 1099-K does not account for the cost-basis or transaction fees. TaxBit automatically calculates the cost-basis which increases tax burden on the customer.

Accurate Crypto Tax Accounting

TaxBit was developed by industry leading accountants, lawyers, and software developers to create the simplest, yet most comprehensive cryptocurrency tax software available to generate required IRS forms for tax reporting. They also received $100 million in Series A funding from PayPal Ventures, the Winklevoss Brothers, Global Founders Capital, and more.

You may select one of the two options:

  • HiFo – Highest in First Out: Best for reducing current tax impacts.
  • LiFo – Lowest in First Out: Best for reducing future tax impacts.

The Most Secure Crypto Accounting Software

TaxBit is constantly reviewing tax regulations, legal codes, and updating the software with the latest programming to make the process as accurate as possible. This saves customers on tax liabilities and reduces headaches that could be caused when personally filling out IRS required tax forms. No one likes doing taxes, but everyone enjoys the refund (or reduced tax liabilities).

TaxBit testifies that its results are accurate. An added side effect of using TaxBit is saving time, as crypto accounting can be difficult and above all, time-consuming. With the pro level subscription, TaxBit will coordinate directly with the IRS on your behalf!

Ease of Use and Customer Support

Even though Taxbit’s crypto accounting app is easy to use, there will be manual input required. Support is accessible via live chat with the app open. Help is available when you need it. In fact, the software is so simple to use, I couldn’t believe it. As of January 6, 2022 TaxBit has a Trustpilot service review score of 4.3/5, with 73% excellent 5/5 reviews and 11% great 4/5 reviews.

Crypto Accounting Support

In my experience, the support team responded within four hours of my first message. Plus, their first response answered my question. CPAs and tax attorneys that founded TaxBit. This means that they’re knowledgeable in not only supporting TaxBit as a product, but in crypto and financial services as well. Although TaxBit may not have every feature for enthusiasts, this is a yearly subscription as opposed to a one-time report. This means the reports and forms can be generated several times, and tweaked to the best possible outcome.

Automatic Exchange and Wallet Sync

The cryptocurrency market is a rapidly evolving and young asset class. Taxbit has been developed and coordinated with industry experts is necessary to provide the most accurate and up to date information for their customers. TaxBit partners directly with crypto’s biggest industry leading associations, most popular exchanges, and professional accountants across the industry in a variety of backgrounds. This helps TaxBit to stay up to date and work on software integration from the onset to proactively resolve discrepancies.

taxbit review best crypto tax software
Some of the supported cryptocurrency exchanges with Taxbit.

Real-Time Reporting

TaxBit users benefit from the company’s insider access, in the TaxBit network, to not only technical systems (API integrations, for example), but knowledge and insight from today’s brightest minds in the crypto space. Below is a shortlist of their biggest affiliations:

They are rapidly expanding their Ethereum team to correctly transcribe Defi and NFT transactions. This will include liquidity pooling, token swaps, buying and selling NFTs, and many more transaction types beyond the typical buy and sell.

Tax Optimizer and Crypto Tax Loss Harvesting

TaxBit automatically tracks cost-basis and selects the best lot to sell to minimize tax liabilities.

Tax-loss harvesting is the process of selling at a loss to claim the loss and use it to reduce capital gains. TaxBit’s proprietary engine accounts for the cost-basis of every transaction and locates the best one to use, regardless of the location on an exchange or wallet. This is a huge advantage and one that many hedge funds and large investment trusts utilize to balance their portfolio and reduce crypto tax liabilities. This is only available in TaxBit Plus and up.

Crypto Accounting Import to TurboTax

Taxbit makes it easy to import the crypto accounting information into mainstream accounting software such as TurboTax and TaxAct. This makes it simpler to complete the whole crypto tax filing procedure. Especially when all the information is entered in one software.

TaxBit Pricing 2022 Options

TaxBit offers multiple pricing options that provide different options for different types of cryptocurrency investors. Taxbit is a subscription based crypto tax accounting software, meaning that all tiers are sold in a yearly subscription format. The options are as follows:

Subscription TierPrice (per year)Number of TradesAdded Features (Includes previous tier)
FreeFREEUnlimitedAutomatic exchange sync, IRS forms, email support
Basic$50UnlimitedLive chat support, historical tax forms,
Plus$175UnlimitedNFT Suite, Tax-Optimization, Portfolio Performance Suite
Pro$500UnlimitedDedicated concierge support, CPA Review, IRS audit assistance
comparison of taxbit subscription tiers.

Although primarily a consumer software, they do provide enterprise-level solutions for the most complicated situations. It is recommended to contact their support directly for more information.

Although this program is used to generate the required IRS forms for tax filing. It can also be used to simulate trades and determine tax impacts, prior to execution. This makes it useful year-round (especially granted crypto’s volatility).

Crypto Accounting Supported Exchanges

TaxBit supports any exchange that allows a CSV export of transactions through a secure read-only API interface. TaxBit supports most of the world’s most popular cryptocurrency exchanges, below is a partial list:

  1. Binance
  2. Binance US
  3. BitStamp
  4. BlockFi
  5. Bitfinex
  6. Coinbase and Coinbase Pro
  7. Uphold
  8. OkCoin
  9. Kraken
  10. and Many, many more!

Supported Cryptocurrencies Accounting Transactions

The TaxBit crypto tax software supports over 2500+ cryptocurrencies! If they don’t support what you want; you can email support and they will review it and possibly add it in the future! It’s simple, just add the address of the cryptocurrency and you will add it to the software. When you click sync transactions, it will sync transactions and it will determine the fair market price and classify it as incoming or outgoing.

It also intends to add the following actions and components to its crypto tax software engine:

  • staking
  • airdrops
  • earned interest and income
  • buying/selling
  • forks

Generate IRS forms from Cryptocurrency Trades

TaxBit is currently only available to generate tax forms for the United States of America (USA). They do plan on adding additional municipalities and governments as regulations continue to evolve and settle down. For more information, refer to their blog post.

Some of the tax IRS forms TaxBit may generate includes the following below:

  • IRS Form 1099-MISC – This form is generated using the interest earned on accounts, affiliate revenues, etc. TaxBit automatically generates this form if it is necessary to file based on transactions recorded.
  • IRS Schedule D (Form 1040/1040-D) – This form details short-term capital gains/losses by including the date, which asset is sold, cost-basis, and proceeds/losses generated form the sale.
  • IRS Form 8949 – This form details long-term capital gains/losses by including the date, which asset is sold, cost-basis, and proceeds/losses generated form the sale.

Taxbit Review 2022

Taxbit is not perfect, but their team is hiring and making their optimizations even better. There are still many things one has to do manually in order to achieve the best results, but I consider it one the best value crypto tax software out there because it reduces much of the tedious work. Cryptocurrency accounting apps are still young, but Taxbit has updated the software several times since we started to use it in 2020.

Pros
+ Best for people who invested in Cryptocurrency on exchanges
+ Industry leading accuracy
+ Generates required tax forms
+ Tax Optimizer can reduce tax liabilities
+ Easy to use and update
+ Simple integration with a variety of platforms, exchanges, and cryptocurrencies.
+ Constantly being upgraded to provide
Cons
– No hardware wallet support (yet)
– Limited DeFi support (will probably be added in the future!)
– No option for manually labelling stolen/lost transactions
– Limited expert/enthusiast feature support for those with multiple hardware wallets, exchanges, etc. (this is bound to become better integrated over time)

Sign up and get Taxbit Free Now!

TaxBit free does allow users to sign up test exchange compatibility and wallet syncing, plus generating IRS crypto forms.

An exclusive offer to cryptocrooks subscribers, save 10% with our Taxbit promo code: SUZBrsBw

taxbit review

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