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TokenTax Review 2022
Founded in 2017, TokenTax is the leading cryptocurrency tax software available on the market today. The company offers a suite of tools to help individuals and businesses track and report their cryptocurrency profits and losses. TokenTax has helped thousands of users file their taxes with the IRS (as well as tax authorities around the world), and the company has become the go-to choice for those looking for a simple and streamlined way to manage their crypto taxes.
I use them for my personal and company taxes here in the UK and found them to be extremely helpful. In this TokenTax review, I’ll provide all the information you might need to make an informed decision as to whether you think this service is right for you.
Here’s a short explanation of how TokenTax works;
TokeTax is committed to helping users navigate the complex world of cryptocurrency taxation, and the company offers a variety of resources to help users stay compliant with the law. They don’t just offer software, but also have an experienced team who will manually check your transactions and tax statement before it’s submitted. In addition to its tax software, TokenTax also offers a range of educational materials, including blog posts, NFT tax guides, DeFi tax guides, and crypto tax guides. Whether you’re a seasoned crypto trader or just getting started, TokenTax is the perfect solution for your tax needs.
How to use TokenTax to file your taxes
As a cryptocurrency investor, you face a unique set of challenges when it comes to filing your taxes. Not only do you need to track your ROIs from each trade, but you also need to report your earnings in a way that complies with the IRS’s complex regulations.
TokenTax can help by providing a platform that makes it easy to track your trades and calculate your tax liability. Just connect your wallets and exchanges, and TokenTax will generate a complete record of your trading activity. You can then use this information to file your taxes with confidence, knowing that you’ve accurately reported all of your earnings. And because TokenTax is updated regularly, you can be sure that you’re always compliant with the latest rules.
Getting started with TokenTax
Getting started with TokenTax is easy. Just sign up for an account and connect your wallet or exchange API. Then, the algorithms will automatically calculate your gains and losses for every trade. You can also import your trade history from select exchanges. In addition, it will help you track your cost basis, so you can calculate your taxes easily. And if you have any questions, the team of tax professionals is there to help.
Benefits of using TokenTax
TokenTax offers a range of features that make it easy to stay compliant with tax laws. For example, the software can generate different tax forms that are required for capital gains reporting. It also offers support for a wide range of exchanges and wallets, making it a convenient solution for investors who hold multiple types of assets. Moreover, the software has unique tools that make it easy to track your portfolio performance and assess your tax liability. As a result, TokenTax is an essential tool for any cryptocurrency investor who doesn’t want to dupe the IRS by not filing taxes. Here are a few more benefits that may influence you into using the software:
- Intuitive and powerful crypto tax software
Anyone who has ever done their taxes would know how complicated and time-consuming the process can be. Now, add in the fact that you have to keep track of all your cryptocurrency transactions, and it can seem like an impossible task. But it doesn’t have to be! With TokenTax you can file your crypto taxes in a jiffy.
The software is intuitive, so you can automatically import your transaction data from the exchanges and wallets where you have signed up for. It also helps you calculate your gains and losses, and generate the required tax forms. Best of all, the developers update the from time to time with the latest tax laws, so you can be sure of not breaking or not complying with any rules and regulations of the IRS.
- Integrations with protocols, wallets, and exchanges
One of the best things about TokenTax is that it always looks to find ways for users to file their taxes easily. That’s why it has some of the latest integrations with leading exchanges, protocols, and wallets in the space. Now, you can automatically import your transaction data from Coinbase, Binance, Kucoin, Ethereum wallets, and more. This will make it easier than ever to stay on top of your crypto taxes and ensure that you are properly reporting your gains and losses.
- Reconciliation teams and expert crypto accounting
Cryptocurrency can be confusing and overwhelming for many, especially when it comes to taxes. TokenTax understands this concern. To avoid this confusion, it has developed a team of experts who can help you with all your crypto accounting and reconciliation needs. Whether you’re a beginner or a veteran, the team can help you figure out what you need to do to fulfill the requirements of the IRS and follow its laws. Whenever you are in trouble, you will find an expert willing to work with you to understand your unique situation and create a plan that works in your favor. So if you’re looking for help with your crypto taxes, TokenTax is the place to go.
- Knowledge about DeFi, NFT, and crypto
As the world of cryptocurrency and blockchain technology continues to evolve, so too do the taxes associated with these assets. TokenTax is a step in the right direction to make the complications easier for its user. It provides enough information about crypto investors and detailed guides on everything from DeFi to NFTs. With TokenTax, you can be sure that you’re getting the most up-to-date and accurate information on how to report your crypto taxes. It’s a trustworthy guide that can help you understand the nuances of crypto taxes.
- Real-time reports and automated forms
TokenTax offers a streamlined experience with automated forms and real-time reporting. Once you start using the software, you will understand how easy it is to file your taxes. In fact, it will become your go-to tool whenever you want to know anything about crypto taxes and how to file them. Those who have already used the software say that they use TokenTax to check their transactions and also calculate their ROIs. The software does everything on your behalf. And if you have any questions, the customer support team is always there to help. This is a revolutionary software that has changed the way how users can file their taxes.
Here’s a really great video about TokenTax for those that want to dig deeper;
Q: How does TokenTax work?
A: TokenTax connects to your exchanges and wallets after you make your payment and register on the platform. It will then import your transaction data. From there, it will calculate your gains and losses and generate a comprehensive report that you can file with your taxes. It also provides year-round support so you can always get help when you need it.
Q: How much does TokenTax cost?
A: TokenTax plans start at $65 per year (Basic Plan) for up to 500 transactions. It has several other plans, such as the Premium Plan which costs $199 per year and provides up to 5,000 transactions, Pro Plan which costs $799 a year for up to 20,000 transactions, and a VIP plan which costs $3,499 and offers up to 30,000 CEX transactions.
Q: Is TokenTax secure?
A: Yes! TokenTax uses TLS encryption to keep your data safe. It never shares your data with any third party unless required by law.
Q: What if you go beyond the maximum limit of your transactions?
A: You will be able to add another 20,000 transactions by paying a small amount.
Q: Is TokenTax Free?
A: No. This service is not free but that is because they like to manually check the transaction report to make sure it’s accurate (software alone can easily make mistakes that could cost you a lot in extra taxes!)
TokenTax is undoubtedly one of the simplest ways to file your cryptocurrency taxes. It automates the entire process, from importing your transactions to calculating your profits, losses, and ROI. Plus, it offers 24/7 support so you can always get help whenever necessary. Use it to simplify your tax filing procedure.
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