Our Take On TaxBit
THE BOTTOM LINE:
TaxBit is easy-to-use and accessible crypto tax software that is suitable for both beginners in the space and advanced traders and enterprises. The platform offers a wide variety of functionalities and has one of the best portfolios of supported integrations with exchanges and wallets in the space. The varying price range of plans also accommodates the needs of all types of crypto traders.
- Free plan available
- Unlimited number of transactions can be imported for all price plans
- Easy to use
- Numerous integrations (500+ exchanges) and automation
- Free pre-prepared tax forms on Pro plan
- Free CPA consultation on Pro plan
- Web-based platform only, no smartphone or tablet applications
- Entirely US-focused with limited international support
In this article, we’ll take a look at TaxBit, a cryptocurrency tax software Product launched in 2018 that has steadily gained in popularity. Read on to learn more about TaxBit functionalities, integrations, pricing, and benefits.
|Tax Loss Harvesting
|$0 – $500 per year
|500+ wallets and exchanges including Coinbase, Binance, Kraken, and Gemini
|Yes, for all plans
|Yes, for all plans
|Yes, for Plus and Pro plans
|Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Helium (HNT), Dash (DASH), Litecoin (LTC), Binance Smart Chain (BSC), Proton, Polygon, Avalanche, and Bitcoin Cash (BCH)
What Is TaxBit?
TaxBit is crypto accounting and tax software that allows users to easily manage and calculate their tax returns for the crypto space. As crypto investments are a growing sector of the global investment landscape, the need for crypto accounting is rising.
The platform offers integrations with 500+ crypto exchanges and wallets like Coinbase, Binance, and Gemini. This means users can easily import their transactions and calculate their gains and losses for the tax year.
What’s more, TaxBit offers a free plan allowing investors to simply have an overview of all their transactions in one place, even if they are not looking for a crypto tax service specifically.
How Does TaxBit Work?
TaxBit relies on its vast network of partners and supported services to allow users to import their crypto transaction history from multiple sources. Therefore, investors have a chance to combine all of their crypto activity in one place and easily calculate their gains and losses over the course of the tax year.
After the transaction import is complete, TaxBit offers a detailed analysis of the asset movement and earnings from trading. What’s more, the Plus and Pro versions of the software offer enhanced analytics tools like the Tax Optimizer and Automated Data Feeds. Additionally, the highest level paid subscription plan grants you a free CPA consultation.
In essence, TaxBit combines all of your crypto trading activity and gives you a plain overview of what trades resulted in gains and what trades resulted in losses.
Despite being one of the newer crypto tax solutions on the market, TaxBit has already built quite the suite of features and products for its customers. Read on to find out about all TaxBit products and services.
Tax Loss Harvesting
Tax loss harvesting is one of the most in-demand crypto tax features. It allows traders to optimize their taxes by using their losses on crypto or NFTs to reduce the final tax amount that is due. As the crypto space is quite volatile, tax loss harvesting can reduce your tax bill drastically. Keep in mind this feature is only available for TaxBit Plus and Pro users.
Free Tax Forms
Tax forms might sound like a nuisance, but TaxBit has made filling them a breeze. If you become part of the TaxBit Network, you will get access to pre-prepared forms like Form 8949, which outlines your yearly disposition of assets and capital. These will be filled with the relevant information from your TaxBit account, making it easy to file them later on. Additionally, you will get access to forms like 1099-MISC and 1099-B, which will aid you in filling out your final 8949 form for the US Internal Revenue Service (IRS). Enterprise clients also get access to additional forms like:
- Digital marketplace payments (1099-K)
- Retirement, IRA (1099-R / 5498)
- Vendor/contractor (1099-MISC & -NEC)
- Foreign/NRA Income (1042-S)
- IRS TIN Verification
Thanks to its Gemini integration, TaxBit offers real-time reporting for transactions going through that exchange. This allows traders to monitor their taxable assets and capital, and calculate gains and losses as they happen.
Automated Data Feeds
TaxBit supports automated data feeds for 500+ exchanges and crypto services, allowing you to have a full view of all your tax activity instantly. In order to take advantage of this automation tool, all you need to do is add all your relevant accounts to your TaxBit dashboard. This will make it easy for you to keep track of all your crypto activity in one place.
The TaxBit tax optimizer allows Plus and Pro users to make informed decisions. The tool shows the real-time impact of trades on the tax portfolio of the trader before they are made. This means users can decide whether to buy or sell an asset depending on how this will impact their tax return statement.
The portfolio performance tab on your TaxBit dashboard (available to Plus and Pro users) allows you to monitor your digital assets and check your daily and monthly gains and losses. Additionally, this feature gives users a chance to look at the different segments of their portfolio, sorted by type of asset or the source or exchange it came from.
NFT And DeFi Suites
Building on the portfolio performance tool, TaxBit also offers dedicated NFT and DeFi suites to its Plus and Pro users. These allow traders to monitor their current NFT holdings and open DeFi positions and how these are performing. What’s more, all assets tracked in these suites are added to the tax calculations in the tax optimizer and automated data feeds.
The TaxBit network of partners is the backbone of the platform’s wide range of integrations and automated services. What’s more, users who are also taking advantage of the services of TaxBit network partners get free access to all necessary forms for completing their full tax returns. Check out the TaxBit network partners:
Is TaxBit Free?
TaxBit offers a free subscription plan which gives you the most fundamental functionalities the platform offers. You are automatically signed up for the free plan when you first sign up for the platform. However, if you are looking for more tools and better support, you can also take a look at the paid price plans TaxBit offers.
TaxBit Pricing And Plans
While TaxBit offers some of its functionality for free, in order to get access to all benefits of the platform, you will need to subscribe to one of its higher-level plans. Read on to find out how much each costs and what benefits it grants users.
|No subscription fee
|Automatic Sync with 70+ Exchanges, CSV Upload for 400+ Digital Platforms, DeFi Tax Engine for Ethereum, NFT Tax Engine for Ethereum, Current Year Tax Forms for All TaxBit Network Partners
|$50 per year
|All Free plan perks plus: Current Year Tax Forms for All Other Platforms, Historical Tax Forms
|$175 per year
|All Basic plan perks plus: Custom Support for CSV Uploads, NFT Suite Tax Optimization ,and Tax-Loss Harvesting Portfolio Performance Suite
|$500 per year
|All Plus perks plus: CPA Review, IRS Audit Support
The free plan is a great start to anyone’s crypto accounting journey. It will allow you to upload your transaction history and calculate your earnings and taxes from NFTs and DeFi on Ethereum. However, this plan lacks the versatility a frequent trader might need, and does not offer much support from TaxBit itself.
The TaxBit Basic plan advances a bit by bringing users a wider portfolio of platforms from which they can input transactions. If you are trading on various blockchains and platforms, this will be a better plan for you than the free one. Still, with Basic, users do not get much support from the platform in terms of accounting.
The Plus plan takes it a step further by introducing the first level of custom support for your account. With this plan, you will get all the perks of the lower-tier plans and an additional support team for your CSV uploads, an NFT management suite, and a portfolio performance suite. Still, if you are looking for CPA or IRS support, this plan will not meet your expectations.
Finally, the TaxBit Pro plan is packed with all the functionalities and support you might need. This plan gives you all the perks from the previous tiers, but you also get one free consultation with a CPA and support for going through your IRS audit.
TaxBit charges no fees beyond those for its paid subscription plans. There are no hidden charges or costs.
What Countries Are Supported?
Fundamentally, TaxBit was designed for users who have to report their taxes to the United States Internal Revenue Service (IRS). However, the platform does not geolocate or limit its users based on location. Users from anywhere in the world can take advantage of tracking their transaction history to help them calculate their gains and losses.
What Exchanges Are Supported?
What Blockchains Are Supported?
Currently, TaxBit supports transaction imports from Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Helium (HNT), Dash (DASH), Litecoin (LTC), Binance Smart Chain (BSC), Proton, Polygon, Avalanche, and Bitcoin Cash (BCH).
What Wallets Are Supported?
If you have a wallet address on one of the supported blockchains listed above, you can easily integrate it with the TaxBit platform. While some popular wallets like Exodus, Atomic Wallet, Trezor, and Nexo are not supported, you can easily import your transaction history through a CSV file.
How To Sign Up For TaxBit
Step 1: Visit taxbit.com and click on the sign-up button at the top right corner.
Step 2: Select the “Create Account” button and type in your name, email address, and preferred password. Make sure to read and accept the terms and conditions.
Step 3: Verify your email address.
Step 4: Log onto the TaxBit website. You can now see your homepage and dashboard.
How To Upload Transaction Data With A CSV File
Step 1: Go to the “Add Sources” section on the left-hand side of your TaxBit dashboard.
Step 2: Go to the upload CSV section on your right.
Step 3: Select the wallet or exchange you want to use and upload your CSV file. Click on “Add Transactions” when you’re done.
Step 4: Wait until your transactions are uploaded. Keep in mind this may take as long as one hour, and you shouldn’t try to upload the same CSV twice, as this might create transaction duplicates and false records.
How To Get CPA Help For Your TaxBit Account
Step 1: In order to take advantage of CPA services on your TaxBit account, you will need to get TaxBit Pro.
Step 2: Reach out to firstname.lastname@example.org or write to the “Help Center” and schedule a meeting with a CPA. Remember that you are allowed one CPA meeting yearly to finalize your crypto reporting.
TaxBit Security Features
Security is one of the cornerstones of the crypto space, and TaxBit takes it seriously. Check out the security features the platform offers and how TaxBit is keeping your data safe.
GDPR Compliance And Data Minimization
In full compliance with GDPR policies, TaxBit collects only the most essential personal data necessary for the business to offer its services. The company also adheres to the “data minimization” principle, aiming to collect as little data as possible and to reduce the amount of information customers need to share.
Customer Data Encryption
Along with GDPR compliance, TaxBit takes its security a step further by encrypting all user data it gathers. This is an important security measure, as encrypted data is much harder to extract, which in turn protects your personal information even if hackers get access to the TaxBit data storage.
Aside from data protection, TaxBit also offers account protection through two-factor authentication. This security feature allows users to set up an additional layer of log-in procedures to ensure they are the only ones able to access the account. With two-factor authentication, every log-on has to be confirmed on a second device or platform through email or phone.
TaxBit Compared To Other Crypto Tax Software
TaxBit is one of many crypto accounting platforms out there. As crypto regulation becomes more prevalent across the globe, more and more users find the need to organize their crypto taxes in a better way. Check out the comparisons below to see what TaxBit brings to the table and what it might be lacking compared to other platforms.
|Transactions Import Limit
|$50-$500 / year
|USA focus, available worldwide
|€59 – Unlimited (they offer custom plans that can go up to an undisclosed amount) / year
|Web and mobile app
|USA, India, UK, Canada, and Australia
|25-transaction limit for the free plan
|$49-$999 / year
|Web, desktop and mobile app
|USA focus, available worldwide
|25-transaction limit for the free plan
|$49-$179 / year
|USA, UK, Sweden, and more
|10,000-transaction limit for the free plan
|$65-$3,499 / year
|USA focus, available worldwide
|500-transaction limit for the cheapest plan
TaxBit Vs. CoinTracker
CoinTracker came to the crypto market in 2017, a year earlier than TaxBit, yet the platforms are steadily competing for popularity. In terms of functionalities, rates, and fees, the two platforms offer very similar terms, with the exception that CoinTracker also has a mobile app integration and a wider scope of international tax support.
TaxBit Vs. ZenLedger
ZenLedger is another crypto tax pioneer launched in 2017. Unlike TaxBit, the platform focuses on offering more advanced taxation tools in its paid plans, including multiple consultations with tax experts. Importantly, TaxBit offers NFT and DeFi transaction integration in its free plan, while ZenLedger only supports these functionalities as part of their paid subscriptions.
TaxBit Vs. Koinly
Koinly and TaxBit have a very similar structure and pricing, however, Koinly is focusing on offering tax reporting tailored to more countries worldwide. While TaxBit focuses on IRS compliance, Koinly also offers tax reports for the United Kingdom, Sweden, Germany, and Canada.
TaxBit Vs. TokenTax
TokenTax is a USA-focused crypto tax service that does not offer a free plan but has one of the richest portfolios of functionalities and support among competitors. The platform allows both private and enterprise users to complete their tax return documents. While a bit on the pricey end of the spectrum, TokenTax has one of the most advanced offerings. Still, if you are looking for a simpler and cheaper service, TaxBit might be the better choice.
Final Thoughts On TaxBit
TaxBit is one of the rising stars in the crypto tax industry. With a varied offering of tools and functionalities and a balanced pricing model, the platform is suitable for beginners and advanced traders and enterprises alike.
Frequently Asked Questions
Yes, TaxBit has been a registered company since 2018 and a legitimate service provider founded by a team of licensed tax experts and professionals.
TaxBit offers a free service and several levels of enhanced subscription services. The highest tier is TaxBit Pro costing users a yearly fee of $500.
TaxBit does not report directly to the IRS but helps its customers tailor their tax reports for the US Internal Revenue Service.
Yes, TaxBit reports can be uploaded to TurboTax.
TaxBit is incorporated in the United States but operates worldwide.
Yes, TaxBit protects the safety of its customers’ data through GDPR compliance and personal data encryption.
Yes, TaxBit has a completely free plan but also offers several paid subscription plans.
Importing your transaction history to the TaxBit platform may take up to an hour, and it is important not to upload a CSV file more than once to avoid duplicate entries.