Crypto

CryptoTrader.Tax Review

CryptoTrader.Tax is basically aimed at filing and paying your cryptocurrency taxes as simple as possible. So, with a thing like this, you should be assured that your trading journey won’t be stressful.

CryptoTrader.Tax is able to fully automate this entire process to the point where you can get your cryptocurrency taxes prepared in a matter of minutes. 

While learning about all of the various taxes that apply to your cryptocurrency holdings and then paying those taxes can take many hours of time and labor, they can be fully automated by CryptoTrader.Tax.

The straightforward, three-step procedure used by CryptoTrader to compile your bitcoin-related taxes.

Tax simply requires you to import all of your trades, add any income received in cryptocurrency, and then obtain your entire report. You can reduce your annual tax bill by taking use of additional features like the tax loss harvesting tool.

Overall, CryptoTrader.Tax is one of the greatest solutions for swiftly and affordably filing your bitcoin taxes that are currently available.

Pros And Cons of CryptoTrader.Tax 

Pros

  • Integrated with TurboTax to make things even simpler
  • A free version is offered
  • You can reduce your taxes by using the tax loss harvesting tool and other features.
  • There are four distinct paid-tier options.
  • 100 percent money-back promise

Cons

  • Limited assistance for cryptocurrency-related actions outside of buying and selling
  • a little on the pricey side
  • mostly concerned with the United States

CryptoTrader.Tax Best Features

The extensive integration of CryptoTrader.Tax with TurbTax, a more conventional tax preparation program that many users use to file their yearly returns, is arguably its strongest feature. 

In reality, TurboTax’s main program includes CryptoTrader.Tax as an option for users who want to instantly import all of their cryptocurrency tax data. Due to the excellent compatibility of these two software programs, CryptoTrader.

Tax will probably be your best option if you typically file your yearly taxes using TurboTax. After entering all of your cryptocurrency tax information into CryptoTrader.Tax, you can directly import the app’s reports into the rest of your TurboTax papers. 

It should be noted that access to TurboTax’s cryptocurrency-focused functionality requires that you purchase either the Premier or Self-Employment package.

CryptoTrader.Tax users of Tax can utilize a variety of methods to prevent paying more taxes than necessary each year. The idea of tax loss harvesting is related to the tool that is most prevalent in this situation.

More About the Features

In other words, you can utilize the tax loss harvesting option to determine whether you should sell a particular cryptocurrency in order to lock in a loss and pay less in taxes overall. 

This is not a feature that should be disregarded since users can even use losses reported on their tax returns to offset some of the taxes they owe on their income.

Finally, there is the CryptoTrader money-back guarantee. Taxes shouldn’t be discounted as a sales tactic. Most crypto tax software does not provide their consumers with this kind of assurance, thus using the tax service is essentially risk-free because you can always get your money back. 

Don’t hesitate to pay to test it out if you’d just like to see how the crypto tax software stacks up against some of the other solutions available on the market. If you decide it wasn’t worth it, you can always request a refund.

Is CryptoTrader.Tax Good for Beginners?

cryptotrader tax

For CryptoTrader, simplicity is the name of the game. Tax traders, and those who are new to cryptocurrency and only need to determine how much tax they owe at the end of the fiscal year, maybe the best available choice for you. 

Using this tool makes it incredibly easy to import your trades, declare any cryptocurrency revenue, create your tax return, and file your taxes.

For those new to cryptocurrency, the robust integration with TurboTax is ideal. You can simply file your taxes, as usual, using TurboTax and then switch to CryptoTrader instead of changing your complete tax filing procedure.

You can quickly import a file back into TurboTax once you’ve completed everything in CryptoTrader.Tax to include it with the remainder of your yearly tax return.

It should be highlighted that this crypto tax software has some limitations for expert users that earn yield in DeFi programs, however, this type of activity is not typical for beginners.

How Much is CryptoTrader.Tax?

The CryptoTrader is available in four paid editions, the same as many other crypto tax software products. In addition to the free tier, the tax platform, you can essentially use all of CryptoTrader’s capabilities with the free tier. 

Tax types include Unlimited, Pro, High Volume, Hobbyist, and Trader. The pricing and the maximum number of trades that may be imported are the only two distinctions between the majority of versions of this crypto tax reporting tool.

You can import up to 100 trades using a hobbyist account, which costs $49 per year. Pro Trader accounts are $99 annually and enable the importation of up to 2,500 trades. 

You are only allowed to make 10,000 trades at the High Volume Trader tier’s $199 annual pricing. The Unlimited tier, which costs $299 annually, allows for unlimited commerce imports. 

It should be noted that while Hobbyist and Pro Trader users can only receive customer care via a live chat, High Volume Trader and Unlimited account users additionally have access to priority customer service.

What’s the Sign-Up Process?

You don’t need to worry about getting out your debit card to make a payment when you initially register your account and signing up for CryptoTrader.Tax, is straightforward. On the CryptoTrader.Tax homepage, click the “Get Started” button in the top-right corner to begin. 

As an alternative, you can click the “Get Started for Free” option located toward the top of the homepage. You’ll be required to enter your email address and create a password on the following page.

You’ll also need to check a box stating your acceptance of the CryptoTrader, there are conditions pertaining to taxes. 

Once you’ve completed those three steps, you can click the “Sign Up” button at the bottom of the form to begin updating your account with more specific information. It should be noted that the sign-up form for CPAs and tax experts can be found below the standard CryptoTrader. tax registration form.

What Countries are Supported?

On their website, CryptoTrader.Tax does not specify any particular nations that they support. The crypto tax platform was initially exclusively intended for people who file their taxes in the United States, but it is now attempting to expand to more international countries. 

CryptoTrader.Tax supports any nation that accepts the FIFO, LIFO, or particular identification computation methods in addition to the United States by default.

The majority of cryptocurrency users worldwide will technically be able to use the CryptoTrader.Tax software with this support.

However, due to the lack of support for particular documents that are found in various jurisdictions worldwide, this cryptocurrency tax app is not a good choice for anyone residing outside of the United States. 

Anyone residing outside of the United States might wish to look for an alternate choice that will more effectively meet their unique needs in the interim. CryptoTrader.Tax plans to enhance their worldwide coverage over time.

What Exchanges are Supported?

The CryptoTrader.Tax software offers a good deal of support for different cryptocurrency exchanges from across the world, but it offers rather little help for the unique tax systems used in a number of different nations. 

Any crypto tax software, including CryptoTrader, must have the capacity to automatically import all of your dealings in crypto assets from the previous year. 

In this regard, tax does not fall short. These are some of the more well-known cryptocurrency exchanges that are supported by this site for submitting cryptocurrency taxes:

  • KuCoin
  • Coinbase
  • Bitstamp
  • Gatehub
  • Bittrex
  • Gemini
  • Poloniex
  • Binance
  • Abra
  • Exodus
  • IDEX
  • Gate.io
  • HitBTC
  • Uphold
  • Bitfinex
  • CEX.IO
  • Huobi
  • Kraken

Potential Deal Breakers

There will always be some possible drawbacks with these kinds of programs because the majority of crypto tax platforms can’t be the greatest choice for every single bitcoin user worldwide.

The absence of stated international support for CryptoTrader.Tax will frequently be a deal-breaker for many potential users. 

The process will not be as automated as it could be with another cryptocurrency tax app like Koinly, which has specific support for a number of nations in the Americas, Europe, and Asia. 

You can still use this software to help you with your taxes in pretty much any jurisdiction in the world, but you won’t be able to do so as easily.

Anyone residing outside of the United States would likely be better off using a separate cryptocurrency tax platform because automation is really the name of the game with these types of programs.

Additionally, CryptoTrader.Tax does not include support for complex, DeFi-related cryptocurrency use cases. Staking, yield farming, mining, and other more recent applications of cryptocurrency cannot, therefore, be simply incorporated into the program. 

Of course, users may still manually enter this type of money into the CryptoTrader.Tax app, but doing so contradicts the whole point of using one of these programs in the first place.

Conclusion

It is important to remember that CryptoTrader Taxes are a little on the pricey side. When you start to use the higher tiers of account types, this crypto tax software actually costs more than Koinly, which is widely acknowledged as the industry standard for crypto tax software platforms.

FAQs

How Much Does CryptoTrader Tax Cost?

High volume trader cost $199, unlimited costs $299, day trader cost $99 while the Hobbyist cost $49.

Yes, it does.

Accointing is one of the best websites for crypto taxes.

Yes, it does.

David Kemmerer, Lucas Wyland, and Mitchell Cookson.

No, it is not entirely free.

If the IRS audits you, you could face interest charges, financial penalties, or even legal action.

The IRS receives a copy of every 1099 form that you receive.

Coinbase is the best cryptocurrency trader

Yes, it is.

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