TaxBit Review: A Cryptocurrency Tax Software

TaxBit is a comparatively new output in the market of crypto tax software platforms. It is backed up by some of the biggest names in the cryptocurrency investment space. Most cryptocurrency tax apps are focused on the final end user but TaxBit also helps companies that need to issue a large number of 1099s. 

TaxBit aims to have a  one-stop shop for anyone who needs help with anything to do with cryptocurrency taxation. It aims at serving both the consumers and the companies. The TaxBit apps version for both the consumers and the enterprise are compatible. This means that all users will get a smooth experience across all Taxbit products. 

Being one of the TaxBit users, we automatically import cryptocurrency trades from a huge variety of exchanges. The level of professionalism found with TaxBit is hard to match. Regulatory agencies have been known for using TaxBit software to better grip on materialising problem areas for crypto space.

How does TaxBit work?

TaxBit is a reasonably new offering in the world of crypto tax application; nonetheless, they are already making a lot of noise. The TaxBit company made a splash in the media early 2021due to the announcement that they had raised 100 million USDfrom some of the biggest names in the  cryptocurrency world. The connections are made with the likes of Coinbase ventures and Winklevoss capital. The connections have helped TaxBit quickly become the actual solution for companies that need to assist their customers with their 1099 forms annually.

The pinnacle packages for this crypto tax software platform are quite pricey. There may not be any other professional crypto tax app on the market as of now.

The crypto tax software platform plans to get anyone who needs to do their crypto taxes every year. TaxBit has also been able to help out regulatory agencies who are still learning how to steer through this world of blockchain technologies. 

Amazing features of TaxBit

Having been allowed by TaxBit to connect to over 100 crypto exchanges, I have been able to experience some of their amazing features. The best feature is that it has nothing to do with the actual software at all. Everything relies on the level of trust that we users put into the TaxBit system as a whole. 

TaxBit has been built to be the most trusted crypto tax software on the market. This goal has been supported by the entities that have backed this project with their own money. The most distinguished names in the cryptocurrency investment world have all backed up TaxBit. The prestigious names include  Paypal, Paradigm, Coinbase venture and Winklevoss capital. The backing from these prestigious crypto ecosystems makes TaxBit the most incredible solution to the growing problem of how crypto will be taxed worldwide. 

The 360 degree view taken by the company in terms of who should use the platform is the other best feature I experienced. TaxBit covers the average person on the streets who only needs to figure out how much money he owes in taxes for a single bitcoin purchase. It also covers the regulator trying to clench the basics of cryptocurrency taxation. In addition, the plan for TaxBit is to be the default choice for customers who need to help their customers file their crypto taxes correctly every year. TaxBit only wants to become the trusted company for all aspects of crypto taxation. It wants to be sort of like the TurboTax for cryptocurrency. 

Lastly, another great feature of TaxBit is that they offer a fair trial and a money back guarantee for their products. The company gave me a chance to try it out for free with the terms that if I do not like the app I get back my money. The TaxBit’s free trial is available on all the account triers: the Basic account, the Plus account and the Pro account.. Hence I had to make sure I got the right version of the App before I bought access to it.     

The sign- up process for TaxBit

Signing up on TaxBit was like a walk in the park. I just downloaded the App, on the official homepage I clicked the ‘join’ button on the top-right corner of the page. I was then presented with a form that I filled in with my basic information about my postal address and my estimated income. 

The first part of the sign up process was to help figure out the specific tax rates that were applied to my capital gain acquired during the previous tax year. 

Once all my information was compiled and synced, I loaded all of my data in the TaxBit interface and got a very high level view of my crypto tax situation.   

How much is TaxBit?

The pricing of the TaxBit cryptocurrency tax software is more or less the same as the options in the market that I had looked at. I discovered that they have three different paid account triers to choose from and each account has a free trial available to help one decide on which one to use.

Here is a brief  on what I learnt about each trier account. 

Basic Account

The basic account is the first TaxBit account trier. It is limited to only 250 transactions per year. Basic account triers cost 50USD.  It is the barebone version of the platform. It does not offer anything extra in terms of help to find possible tax savings. The basic account can only be used for the tax forms related to the most recent tax year. 

Plus Account 

The TaxBit Plus account is limited to 2,500 transactions and it costs 175 USD per year. Using the plus account, I started to get loaded with extra features for holding my yearly crypto taxes. It works for any tax year. This means that I can go back to the previous years and report gains that I had not reported to the local tax authorities. 

With the TaxBit plus account, I gained access to four additional tools for handling my cryptocurrency tax reporting: Tax Optimizer, Portfolio Performance, Loss Harvesting, and DeFi Beta. The four tools are benefitial for more sophisticated crypto traders and DeFi users who utilize their crypto activities as no less a good portion of how they make a living.  

Pro Account

The last TaxBit account is the Pro Account. It can take up to 25,000 transactions and costs 500 USD per year. The Pro Account is primarily for those that treat their cryptocurrency activities as a full-time job. It is costly but it is worth it because of the many additional features that it comes along with.      

The TaxBit Pro Account users can get their tax reports reviewed by a Certified Professional Accountant before sending them to the local tax agency. A certified accountant looking over your crypto tax filing makes sure that you avoid any mistakes on your tax forms. An accountant potentially looks into the additional savings that you missed when originally compiling all your crypto trading data. 

Verdict 

Having used TaxBit, I would recommend it to all cryptocurrency traders. It is quite costly but it is the best crypto tax software platform. 

Have you used Taxbit? What's your experience with it?