- >Best CryptoCrypto Tax Software
- >TokenTax Review 2021
- Global crypto tax software endorsed by many figures in the industry
- Full host of features including tax loss harvesting, margin trading and more
- Can work as standalone tax software
- Full team of accountants to assist you
Endorsed by prominent members of crypto industry
Works in every country
Works with margin trading accounts
Has a tax loss harvesting tool
Can fulfill your entire tax reporting needs, not just for crypto
Get hands-on support from certified accountants
Not a full-fledged portfolio tracker
More expensive than other offerings
Basic account only supports three exchanges
Paying with crypto requires contacting customer support
No free trials available
How Does TokenTax Work?
Unlike most other crypto tax software applications, TokenTax is much more than an app you can use to file your crypto taxes.
There is a full team of crypto-focused accountants behind this product that can help you with every aspect of the crypto tax filing process. The accountants behind TokenTax have helped users file their crypto-related taxes in 18 different countries, and their products and services cane be used in any tax jurisdiction around the world. In fact, TokenTax goes the extra mile by acting as your full-fledged tax accounting software, going beyond your crypto holdings and helping you cut costs and save money in other areas of your overall tax filings.
The platform is also able to support every single crypto exchange around the world, and those who are operating in the world of decentralized finance (DeFi) will find tools on TokenTax to automate the filing of taxes for these sorts of advanced crypto use cases. The TokenTax team can even offer additional assistance to those who are facing an audit from the IRS, as the goal is for this crypto tax software solution to handle any potential issue that its users send over to the platform.
Best Features of TokenTax
The best feature of TokenTax is that this platform is about much more than just automating the process of filing your annual taxes. Behind the software is an entire team of certified accountants who can help you with any question you may have about your crypto taxes and assist you with cost-saving tactics that can help lower your overall tax burden. While the added assistance from crypto tax accountants comes at a much steeper cost than using the software to do your taxes on your own, it is well worth it for those who are already looking at a potentially-high crypto tax bill in a particular year.
Another key selling point of TokenTax is that it supports every single cryptocurrency exchange and tax jurisdiction around the world. No stone has been left unturned with this platform, which means any crypto user in the world will be able to use TokenTax to manage their crypto tax reports. While integrations with the most popular crypto exchanges is more seamless than the smaller exchanges, the reality is that any exchange that supports exporting trade data via a CSV file can be imported into TokenTax. Additionally, the explicit support for every tax jurisdiction around the world speaks towards the dedication of this platform to meet every single crypto user’s needs.
TokenTax also has a number of endorsements from prominent crypto individuals on its homepage. These sorts of endorsements from the likes of Messari CEO Ryan Selkis and CoinShares CSO Meltem Demirors can go a long way in helping new users rest easy knowing that they’ll be in good hands with TokenTax. The number of endorsements of TokenTax from prominent crypto influencers is much greater than any other crypto tax reporting platform on the market.
One last feature of TokenTax worth mentioning is the fact that this platform can be used as your entire tax account software solution. Instead of just focusing on the crypto niche, TokenTax offers an expanded account for those who wish to use the platform as a single solution for all of their tax needs. Those who just want to use TokenTax for their crypto-related tax calculations can easily import their reports into TurboTax to complete their overall tax reporting obligations.
Is TokenTax Good for Beginners?
While TokenTax has received rave reviews from experienced crypto users who have run into tax issues related to their crypto holdings, the reality is that this tax software may not be the best option for someone who is new to the crypto asset market. Most beginners will want to use the entry-level account tier when signing up for a crypto tax accounting service or software, and the cheapest option with TokenTax is rather limited, as it only has support for exchange accounts on Binance and Coinbase.
That said, if you’re willing to pay top dollar for your crypto tax services, then you’ll be able to gain access to automatic tax reporting with any crypto exchange around the world in any tax jurisdiction. You can even pay for the most expensive account type in order to get additional assistance from a crypto tax accountant who can help you with all of your taxes and not just the taxes related to your crypto holdings.
So, at the end of the day, whether TokenTax is a useful option for a crypto beginner really depends on how much money you’re willing to throw down on your crypto tax accounting service. Those who just want to be able to compile a report on their crypto holdings and import it into TurboTax may want to look elsewhere for better entry-level options, while those who are willing to pay top dollar may find that TokenTax is the perfect solution for their crypto tax needs.
What’s the Sign-Up Process?
To get started with TokenTax today, you can start by clicking the “Sign Up” button in the top-right corner of the TokenTax homepage. This will bring you to a secondary page where you just need to enter your email address and create a password in order to get started.
There is also an option to sign up with your Google account. Once you have entered this basic information, your account will be created and you can then decide what kind of crypto tax reporting package will be best for your situation.
The first question to answer is whether you’d like to get your full tax reporting service through TokenTax with a crypto-focused CPA or simply calculate the gains and losses related to your crypto holdings. There are also a number of account add-ons to choose from after you have selected your base subscription plan.
Once you have paid for your TokenTax account, you can then start importing your data and calculating what you owe in taxes on your crypto portfolio for the past year.
How Much Does TokenTax Cost?
TokenTax offers more variation with what you can get out of their crypto tax accounting services than perhaps any other option on the market. However, every tier is also more expensive than most of the equivalent offerings from other crypto tax reporting services. Additionally, users need to decide if they want to use TokenTax for their entire yearly tax filing needs or just for calculating their crypto gains and losses. It should be noted that there are no free trials available for any of the different account tiers offered by TokenTax.
Basic Account – $65
The Basic account is the cheapest tier available to TokenTax users. Most notably, this account tier can only automatically import trading data from exchange accounts on Binance and Coinbase, although Coinbase Pro activity is included as well. In the grand scheme of things, this is an extreme limitation on an entry-level account that is not seen at many other crypto tax calculating software services. Additionally, an entry-level account usually costs around $50 per tax year, but the cost for this Basic account at TokenTax is $65 per year. Up to 500 transactions can be imported into this type of TokenTax account, and TuboTax integration is available. That said, if you’re looking for a cheap option for doing your yearly crypto taxes, you should look somewhere other than TokenTax, as the dearth of supported crypto exchanges combined with a higher price makes this a poor selection.
Premium Account – $199
A Premium TokenTax account makes a bit more sense. It includes support for up to 5,000 crypto transactions and support for every crypto exchange in the world. In fact, this TokenTax account tier also includes automated integrations for activities in the realm of decentralized finance (DeFi) and margin trading at BitMEX, Deribit, and Bybit. Users of this account type also get access to a tax loss harvesting tool that can help individuals find opportunities to lower their tax bill. At $199, this account tier is more expensive than the middle tier found at other crypto tax accounting platforms; however, it also includes a much stronger feature set.
VIP Account – $2500
A TokenTax VIP account is for high net worth individuals who do a large amount of crypto trading on a yearly basis. Up to 30,000 crypto transactions can be imported at this tier, and you also get support for every single DeFi project on the market. In addition to the features found in the Basic and Premium tiers, VIP members also gain access to advanced crypto reconciliation for unique situations where tax has been lost or complex trading strategies. VIP TokenTax users also get two 30-minute sessions with a tax expert to ask any all questions that may come to mind when it comes to crypto taxation. Finally, it should be noted that a TokenTax VIP membership includes assistance for anyone who is currently going through an IRS audit.
Options for Full Tax Return Support
On top of the crypto-focused tax support offerings from TokenTax, there are also full-fledged tax return services available via this platform. A Bronze, Silver, or Gold TokenTax account will have TokenTax take care of your entire yearly tax responsibilities rather than just what you’re doing in the crypto markets. These tiers come in at prices of $699, $999, and $3,000 per year respectively.
What Countries are Supported?
One of the most unique features of TokenTax is that the platform is able to help crypto users in any country around the world. Whether you’re a longtime bitcoin holder based in the United States or you’re a new crypto trader based in southeast Asia, TokenTax will able to provide you with its full suite of products and services for calculating the taxes related to your crypto capital gains and losses over the past year.
Most crypto tax software solutions list the countries that are supported on the platform’s official website, but TokenTax has opted to simply support every possible situation imaginable instead.
What Exchanges are Supported?
In addition to supporting every tax jurisdiction, TokenTax also supports every crypto exchange in the world.
Having said that, it should be noted that every exchange is not treated equally by the TokenTax software. While many of the popular exchanges can be integrated into TokenTax via API keys, many of the smaller, niche exchanges are only supported via the importation of CSV files that can be generated by basically any crypto exchange that exists today.
Even the relatively new wave of decentralized exchanges that operate in the DeFi space are supported by TokenTax. Here are some of the popular crypto asset exchanges that are listed as supported on the official TokenTax website:
- Cash App
- Celsius Network
- Yearn Finance
TokenTax may have the most comprehensive set of features when you consider that they can support every country, every crypto exchange, and much more; however, there are still a few different potential dealbreakers to consider when it comes to using this platform as your crypto tax software solution.
First of all, this platform is expensive. There are no free trials or free account tiers with TokenTax, which means you’re going to have to pay some money if you want to use the app. Additionally, the price for an entry-level account is $20 more expensive per year than some other quality crypto tax apps on the market, and this Basic account only offers support for two exchanges (Binance and Coinbase). While those with large amounts of cryptocurrency in their overall portfolio can probably benefit from a Premium or Pro membership due to the plethora of additional features that come with those types of accounts, those who just need a cheap, basic option for handling their crypto taxes should look elsewhere.
Another potential issue with TokenTax is that it is not a full-featured crypto portfolio tracker. Many crypto users like the idea of being able to handle their crypto portfolio management and tax reporting within the same app, but this is not possible with TokenTax, as the platform is solely focused on the tax side of things. That said, it is pretty easy to import all of your crypto portfolio data from Blockfolio directly into your TokenTax account, but this is not possible with a Basic account.
Finally, it should be noted that TokenTax does not have native support for cryptocurrency payments. When you’re going through the checkout process on the TokenTax website, you will only have the option to pay with traditional forms of payment such as a credit card or debit card. If you want to pay with bitcoin or another cryptocurrency, you must contact customer support before doing so. Some crypto users will see this as a dealbreaker because they’ve like to see more support from TokenTax for the overall crypto economy.