Crypto investing can be more fun than a rollercoaster, but the fun stops when it’s time to do crypto taxes. Fortunately, crypto tax software like Koinly can make the job much easier. In this Koinly review, we’ll learn what Koinly is, how it works, and how much it costs to use.
We’ll also explain who Koinly is best for. Spoiler alert: Koinly offers several pricing tiers, making this crypto tax software a good fit for just about everyone, whether you have 50 crypto transactions or 5,000.
Let’s get started with our overall take on Koiny and its value proposition.
Key Takeaways
- Koinly simplifies crypto tax reporting with automatic tracking, real-time portfolio monitoring, and multiple accounting methods.
- It supports 400+ exchanges and wallets, making it a top choice for investors, traders, and businesses.
- Pricing tiers cater to all users, from free basic tracking to paid plans for high-volume traders.
- Koinly integrates with TurboTax and TaxAct, allowing seamless tax filing with accurate reports.
- Security is strong but lacks two-factor authentication, though compliance with GDPR and SOC 2 ensures data protection.
Our Verdict on Koinly
Koinly is a comprehensive and user-friendly crypto tax software solution that makes it easy to track and report cryptocurrency transactions and crypto capital gains. Its features, including automatic transaction tracking, real-time portfolio monitoring, and support for multiple accounting methods, make it a powerful tool for tax advice and preparation.
Koinly represents a solid choice for anyone looking for an easy-to-use crypto tax software solution. Several available pricing tiers make Koinly a good value compared to competitors, particularly for users with more than 100 crypto transactions.
Koinly Pros & Cons
Let’s review some of Koinly’s pros and cons before exploring the platform in more detail.
Pros
- Automatically generates reports with calculated gains, losses, and income.
- Automatically monitors transactions across 400+ exchanges and wallets.
- Provides instant updates on crypto holdings and performance.
- Supports multiple accounting methods, including FIFO and LIFO.
- Easy to use, even for those new to crypto.
- Compatible with popular tax software like TurboTax and TaxAct.
- Koinly offers a free plan with limited features for simple tax situations.
Cons
- Paid Koinly plans can be expensive for large portfolios or complex tax situations.
- Limited support for certain countries or regions.
- Lacks two-factor authentication, a common security feature.
What is Koinly?
Koinly provides online crypto tax software designed to simplify the process of preparing crypto taxes. The Koinly web app automatically tracks crypto transactions, calculates gains and losses, and generates accurate reports. Support for over 400 exchanges, wallets, and blockchains makes it one of the best crypto tax software options available.
The service was founded in 2018 to provide a user-friendly platform for crypto tax reporting. Since then, Koinly has grown to become one of the leading crypto tax software providers, serving over one million users worldwide. Much of this success can be attributed to a comparatively simple interface and more accurate reporting than other leading apps. Koinly’s platform is designed to be intuitive and easy to use, even for those new to crypto.
Key features of Koinly include automatic transaction tracking, real-time portfolio monitoring, and support for multiple accounting methods. The platform also integrates with popular tax software, making filing taxes and reporting crypto income easy.
Once your tax reports are generated, Koinly can complete tax forms, such as Form 8949 (sales and dispositions) and Schedule D (capital gains and losses). Additionally, users can easily export the data to popular tax software like TurboTax or TaxAct, or download the reports as a PDF or CSV file. This streamlined process saves you time and effort when filing your taxes.
Pricing varies based on the number of transactions. We’ll dive deeper into the pricing options and their features in a later section.
Key Features of Koinly
Koinly offers a range of features that make it an ideal solution for crypto tax reporting. Here are some of the key features:
Reporting Tool
Koinly’s reporting tool allows users to generate accurate and detailed tax reports. The tool can also complete tax forms, such as Form 8949 and Schedule D, populating the calculated capital gains and losses, saving users time and effort when filing their taxes. Doing this by hand can be a tedious process for active crypto users.
Portfolio Tracking
Koinly’s portfolio tracking feature provides users with a real-time overview of their cryptocurrency holdings. You can track transactions across multiple exchanges and wallets, giving you a clear picture of your portfolio’s performance at a glance. Users can also monitor their portfolio’s growth over time and identify potential tax-loss savings.
Crypto Tax Calculator
Koinly’s crypto tax calculator is a powerful tool that helps users calculate their cryptocurrency gains and losses and generate accurate reports.
This feature plays a vital role in Koinly’s offerings, becoming the focal point of tax prep. The calculator considers various elements, including your transaction history, accounting method, and tax jurisdiction, to completely understand your tax liability.
However, accurate data remains key. The Koinly tax calculator enables you to verify your taxable income and gains before you export data to reports or tax software. If you missed a wallet data import, this is where it will become apparent. This feature allows you to identify any missing wallets or overlooked exchanges, ensuring your reports are accurate before filing.
Tax Reports
Koinly generates tax reports tailored to the user’s specific tax needs. The reports include calculated gains and losses, crypto income from mining, yields, airdrops, or other crypto you receive. The platform supports various accounting methods, including First-in-First-out (FIFO) and Last-in-First-out (LIFO). This flexibility allows easy integration with Turbo Tax, for example, which is a popular tax-prep app that supports both accounting methods.
Integration with Tax Software
Crypto is likely just one part of your tax prep, and many filers depend on leading tools like TurboTax to file their taxes. Koinly integrates with popular tax software like TaxAct and TurboTax, as shown below.
You can import your crypto tax data into supported tax prep apps, allowing you to prepare your entire return. Notably, the IRS Free File app also supports CSV imports. However, upload size limitations may require you to split up the CSV into smaller files if you have a large amount of transactions.
Automatic Transaction Tracking
Koinly’s automatic portfolio tracking feature saves users a lot of time and effort. The feature tracks transactions across multiple exchanges and wallets, giving users an accurate and up-to-date picture of their performance. Choose a blockchain and provide a wallet address, and Koinly imports the transaction data.
Blockchain and Exchange Support
Koinly supports more than 170 blockchains and 400+ exchanges, crypto wallets, and services. This support allows users to track and report on their cryptocurrency transactions across a wide range of platforms, making it ideal for users with a spread of cryptocurrency holdings. Expect support for the most popular chains, such as Bitcoin, Ethereum, and Solana, as well as dozens of other blockchains. This wide support sets Koinly apart from many competitors.
Tax Optimization
Koinly’s tax optimization feature includes tax-loss harvesting, which helps users minimize their tax liability by offsetting capital gains with losses. This helps you make informed decisions about your cryptocurrency holdings and optimize your tax strategy for potential savings.
Support for Multiple Accounting Methods
The IRS treats digital assets as property, but you may have some flexibility in reporting gains on this property. Koinly supports various accounting methods, including FIFO and LIFO, meaning you can choose the best method for your tax needs. This means that you can comply with the specific tax regulations for your situation while optimizing your tax strategy by selecting the method that results in the lowest tax liability.
Security and Data Protection
Koinly prioritizes the security and protection of user data, employing strong measures to safeguard sensitive information. The platform utilizes end-to-end encryption, secure socket layer (SSL) technology, and regularly updated secure servers to prevent unauthorized access.
Additionally, Koinly complies with industry-recognized standards, such as GDPR and SOC 2, to ensure the highest level of data protection. Users also have the option to export their data, providing them with full control over their information and enabling moving to other platforms if needed.
Is Koinly Crypto Tax Software Easy to Use?
Koinly reviews on Trustpilot rank the app a stellar 4.7 out of 5 stars, with many reviewers praising its ease of use. Crypto tax prep can be tedious regardless of your platform, but Koinly makes this often-dreaded task easier than many competitors.
One area in which Koinly excels is in its ability to spot scam tokens. Some competing platforms mislabel these as similarly named tokens, assigning a dollar value where there really is no value. If you overlook these mishaps in the jumble of other transactions, you could end up paying taxes on income that never occurred. Accuracy matters, and Koinly saved us money in our own Koinly review testing by flagging scam tokens.
We aren’t all crypto pros – ease of use matters even for the most experienced users. Koinly is designed to be user-friendly and accessible to new users while still offering crypto tax software for DeFi investors and those with thousands of transactions. The platform’s interface is intuitive and easy to navigate, making it simple to add new wallets. You can add a wallet to your account with a few clicks.
However, some users may find it challenging to add crypto exchanges that use an API (Application Programming Interface). This challenge isn’t unique to Koinly; some leading trading platforms, such as Coinbase and Binance.US, support OAuth sign-ins. This allows users to sign in using the trading platform’s username and password without sharing these details with Koinly.
Koinly offers tooltips and guidance within the interface to help users navigate and use the app. In addition, an extensive Help Center assists users in getting started with the platform, troubleshooting common issues, and optimizing their tax process. Helpful videos also offer step-by-step instructions and guides for using the Koinly platform.
Some competing crypto tax software caters to business users, making these platforms more difficult, particularly for new users. Koinly’s simplicity and ease of use make it ideal for users who want to simplify their crypto tax reporting process without requiring extensive technical knowledge.
How to Use Koinly
Using Koinly is a straightforward process that can be completed in a few simple steps. One of the benefits of Koinly is its comprehensive crypto tax calculator, which can help you navigate the complex world of crypto tax rates and crypto tax brackets. Koinly handles all the math.
Here’s a step-by-step guide to get you started.
Step 1: Create an Account
To begin using Koinly, you’ll need to create an account. Visit the Koinly website and click on the “Sign up” button. You’ll be prompted to enter your email address, password, and other basic information.
It’s worth noting that Koinly offers a range of plans, including a free version, so you can try out the Koinly app without committing to a paid plan. You can choose a plan later.
Step 2: Add Your Wallets and Exchanges
Once your account is created, you’ll need to add your wallets and exchanges to Koinly. Click on the “Wallets” tab and select the type of wallet or exchange you want to add. You’ll then be prompted to enter your API key, wallet address, or other relevant information.
Step 3: Import Your Transaction Data
After you add your wallets and exchanges, Koinly will begin a data import of your transactions. Depending on the number of transactions and your internet connection speed, this may take a few minutes. Koinly automatically begins the update process as you add each wallet or exchange.
Step 4: Choose a Plan
After importing your transaction data, you can choose a plan that suits your needs. Koinly offers a range of plans based on your number of transactions, so you can select the one that’s right for you.
This flexible pricing model makes it easy to start using Koinly, regardless of the size of your crypto portfolio. In a later section, we’ll review the Koinly cost structure in detail.
Step 5: Review and Verify Your Data
Once your transaction data has been imported, review and verify it for accuracy. Check for any errors or discrepancies, ensuring all your transaction data is complete. One of the most common errors is forgetting to add all the wallets and exchanges. Missing just one of these could change your tax liability. You can make adjustments as needed.
Step 6: Generate Your Tax Report
Once your data is verified, you can generate your report. Koinly will use your transaction data to calculate your gains and losses and provide you with a detailed report that you can use to file your taxes. If you find an error, such as a wallet you forgot to include, you can make unlimited revisions with a paid plan.
Step 7: Export and File Your Tax Report
Now, you can export your report and file it with your tax authority. The platform provides a range of export options, including CSV, PDF, and TurboTax, making it easy to integrate with your existing tax software.
Koinly Pricing & Fees
Koinly offers a range of pricing plans to suit different user needs, making it a great option for those looking for free crypto tax software or paid plans with advanced features. The Koinly cost is competitive with other crypto tax software solutions, and the platform’s pricing is designed to be transparent and flexible.
Free Plan
The free plan is a great way to start with Koinly and discover the platform’s features. You can import wallets or exchange accounts to get a feel for how Koinly works without spending any money. However, it’s essential to note that the free plan does not include all of the features necessary for filing taxes. While it’s accurate to say that Koinly offers free crypto tax software in its marketing, the free tier comes with some notable limitations.
The following features are not included in the free plan:
- Form 8949, Schedule D
- International tax reports
- Comprehensive audit report
- Export to TurboTax, TaxACT
- Custom file import
- Cost analysis
- Chat support
Because the free plan is missing these essential features, you can’t use it to file your taxes. Instead, the free plan is a no-obligation way to learn about Koinly’s capabilities and see if it fits your needs well.
Koinly Pricing for Paid Plans
Koinly’s pricing for paid plans is based on the number of transactions, with different plans offering varying levels of support and features. The Koinly pricing plans are designed to be flexible and scalable, making it easy for users to choose the plan that best fits their needs.
A paid plan covers the cost of reports for one tax year, meaning you’ll need to purchase a plan for subsequent years if you want to use Koinly to file your crypto taxes in the future. However, once you’ve purchased a plan for a given tax year, you can still access those reports in the future.
Koinly Plans
Koinly’s paid plans, which include the Newbie, Hodler, Trader, and Pro plans, all provide the full suite of features, including Form 8949, Schedule D, and tax calculations.
The main distinction between the Koinly plans is the transaction limit, with each plan allowing for a different number of transactions. The paid plans and their corresponding transaction limits are:
- Newbie: $49 per year (Up to 100 transactions)
- Hodler: $99 per year (Up to 1,000 transactions)
- Trader: $199 per year (Up to 10,000 transactions)
- Pro: $299 per year (Up to 100,000 transactions )
- Custom: Contact Koinly for a custom quote if you have more than 100,000 transactions
By choosing a paid plan, you gain access to all the features you’ll need to file your taxes, including the ability to generate Form 8949 and Schedule D and export your tax calculations to TurboTax or TaxACT. International tax reports are also available with all paid plans.
Koinly’s paid plans also include priority customer support, such as live chat, which can be helpful if you have questions or need help with the platform.
Transaction Counts
Koinly counts transactions as events in which crypto enters or leaves your wallets or exchange accounts. Connecting to a dApp that requires a wallet sign-in, voting with your crypto wallets, and similar blockchain activities are not included in the transaction count. Koinly can also combine transactions that exchanges split and intelligently remove spam transactions.
Is Koinly Safe?
Koinly prioritizes the security and safety of its users’ data, employing a multi-layered approach to protect sensitive information. This UK-based platform undergoes regular audits to ensure the integrity and effectiveness of its security measures. Koinly also uses encryption methods to safeguard data both in transit and at rest, meaning that all interactions between the user’s browser and Koinly’s servers are secure.
Compliance and Security Measures by Region
Koinly implements various measures to ensure the security and accuracy of its cryptocurrency tax solution, including:
- SOC 2 certification: Koinly meets the rigorous security and operational standards set by the American Institute of Certified Public Accountants (AICPA), demonstrating its commitment to protecting customer data.
- ISO 27001 certification: Koinly’s adherence to this globally recognized standard ensures the implementation of robust security practices throughout the platform.
- GDPR compliance: Koinly fully complies with the General Data Protection Regulation (GDPR), ensuring the secure handling of personal data for EU citizens.
- Country-specific compliance: Koinly has undergone reviews with third-party accounting firms in several countries, including:
- Canada: Koinly’s software has been reviewed to ensure alignment with Canada’s tax regulations and methodologies.
- Australia: The platform’s tax calculation methods have been verified to ensure accuracy and compliance with Australian tax authorities.
- Ireland: Koinly’s tax calculator has been reviewed to ensure compliance with Irish tax regulations and guidance.
Access Controls and Monitoring
Koinly implements strict access controls, limiting access to user data to authorized personnel only. All access to user data is meticulously logged and monitored, enabling the detection and prevention of unauthorized access attempts.
Regular Security Audits and Testing
Koinly undergoes regular security audits and testing to ensure the integrity and effectiveness of its security measures. Independent security experts conduct these audits, identifying vulnerabilities and providing recommendations for improvement.
Limitations
While Koinly’s security measures are robust, the platform currently does not offer two-factor authentication (2FA) as an additional layer of security. However, Koinly’s feature request board indicates that adding 2FA to the platform is in progress. Despite delays in implementing 2FA, Koinly’s otherwise comprehensive security approach suggests it’s a trustworthy platform for managing crypto taxes.
Who is Koinly Best for?
In our Koinly review, we’ve explored pricing tiers, the platform’s operation, and its security features. Next, we’ll examine who is best served by Koinly’s services.
The platform’s flexible design and comparative ease of use make it a good fit for most crypto investors, while custom plans make it a viable choice for traders with over 100,000 transactions. From individual investors to professional accountants and businesses, Koinly offers a functional solution to the tricky problem of crypto tax filing.
Individual Investors
Koinly is perfect for individual investors who want to easily track their cryptocurrency transactions and generate accurate tax reports. The platform supports a wide range of exchanges, wallets, and blockchains, making it easy to connect and import transaction data.
With Koinly, individual investors can:
- Simplify their tax reporting process
- Accurately calculate their gains and losses
- Stay compliant with tax regulations
Professional Accountants
Koinly is also an excellent choice for professional accountants who manage cryptocurrency tax reporting for their clients. The platform’s advanced features, such as automated transaction tracking and tax loss harvesting, make it easy to provide accurate and comprehensive reports.
With Koinly, professional accountants can:
- Quickly identify capital gains, losses, and crypto income
- Determine cost basis and holding periods
- Export reports to CSV for use in tax filing
Businesses
Koinly is suitable for businesses that manage cryptocurrency tax reporting for their employees or clients. The platform’s scalability and flexibility make it an ideal choice for businesses of all sizes.
With Koinly, businesses can:
- Convert crypto income to its value in traditional currencies
- Ensure compliance with tax regulations
- Provide accurate and comprehensive tax reports to their employees or clients
Cryptocurrency Traders
Koinly is also an excellent choice for cryptocurrency traders who need to track their transactions and generate accurate tax reports. The platform’s advanced features, such as real-time portfolio tracking and tax loss harvesting, make optimizing trading strategies and minimizing tax liabilities easy. With Koinly, cryptocurrency traders can:
- Simplify their tax reporting process
- Accurately calculate their gains and losses
- Stay compliant with tax regulations
DeFi Users & Crypto Miners
If you dip a toe into liquidity pools and other decentralized finance (DeFi) tools, tracking transactions can get a bit trickier. Rather than try to make sense of it all from blockchain explorers, the Koinly crypto tax calculator can calculate your crypto tax rate according to the type of gain or income. This feature, and particularly Koinly’s support for liquidity pools, lending platforms, and vaults, makes it a top choice in crypto tax software for DeFi investors.
Koinly’s crypto mining tax calculator works similarly. It tracks mining income and assigns a value in dollars (US users) when the income is earned.
Overall, Koinly is an excellent choice for anyone who needs to manage cryptocurrency tax reporting, regardless of their level of experience or portfolio size. The platform’s comprehensive features, user-friendly interface, and excellent customer support make it ideal for individual investors, professional accountants, businesses, and cryptocurrency traders.
Is Koinly the Best Crypto Tax Software?
Preparing crypto taxes isn’t fun, and Koinly won’t change that. However, this powerful platform can make a difficult job much easier. This intuitive platform takes the hassle out of crypto tax reporting, saving you time and reducing the stress that comes with it.
Koinly’s comprehensive features and user-friendly interface make it ideal for anyone considering simplifying their crypto tax experience. From automated transaction tracking to advanced tax optimization tools, Koinly has everything you need to manage your crypto taxes. Koinly’s plans let you choose a transaction limit that fits your needs without overpaying.
Of course, no platform is perfect for every use case. The free tier has notable restrictions, and the platform is still working on implementing two-factor authentication (2FA). However, these minor drawbacks don’t detract from Koinly’s overall value. With its security measures, commitment to compliance, and dedication to customer support, Koinly offers a trustworthy and reliable way to do your crypto taxes.
A free trial tier lets you take the app for a test run to see if Koinly is the best crypto tax software for your needs. While it’s ultimately up to you to decide, it’s clear that Koinly is a top contender. Every paid plan provides the full suite of features, creating value at every price point. If Koinly looks like the right choice, it’s easy to upgrade from the free trial tier.
Try Koinly NowKoinly
Pros
- Easy wallet / exchange integration
- Straightforward for newbies
- Competitive pricing
- Integrates with other tax software
- Instant reports
Cons
- May be costly for large organizations
- Automatic reports vary by countries
- No 2FA
FAQs
Does Koinly report to the IRS?
Is Koinly crypto tax software free?
Is Koinly legit?
Is Koinly or CoinTracker better?
Is it safe to connect Coinbase to Koinly?
References
- IRS Free File: Do your taxes for free (irs.gov)
- Digital assets (irs.gov)
- Koinly (trustpilot.com)
- Tax advice and answers from the Koinly Team (koinly.io)
- Koinly (youtube.com)
- SOC 2® – SOC for Service Organizations: Trust Services Criteria (aicpa-cima.com)
- How we stay compliant, secure and accurate (koinly.io)
- 2FA / MFA options (koinly.io)
- About Form 8949, Sales and other Dispositions of Capital Assets (irs.gov)
In This Article
Free Bitcoin Crash Course
- Enjoyed by over 100,000 students.
- One email a day, 7 days in a row.
- Short and educational, guaranteed!
Why you can trust 99Bitcoins
Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.
Weekly Research
100k+Monthly readers
Expert contributors
2000+Crypto Projects Reviewed
