TaxBit Review 2022 - Cheapest Crypto-Tax Software?
Taxbit is one of the cheapest and best Cryptotax tools in 2022 — not only does it have an easy to use interfaces and good pricing but when we tested it out ourselves and went through the process to file our taxes this year with Taxbit the process was quite quick and painless — coming in at just over an hour, and that’s despite us having dozens of exchanges, DeFi wallets, and some P2P transactions we needed to input manually.
TaxBit is quite a bit cheaper than other crypto-tax platforms such as TokenTax and Koinly, especially if you are an active trader or have 1000s of transactions due to staking or lending your cryptoassets due to them not capping the number of transactions you can do on even the cheapest plans they offer.
|💰 Pricing & Fees||Very Cheap|
|💻 Platform Quality||Above-Average|
|🛠 Customer Service||Good & Fast
|🥇 Best For||Budget-Focused People|
For someone who is budget-conscious and didn’t engage in ‘advanced defi transactions’ like flash-loans then TaxBit is arguably the best crypto-tax platform available in 2022 — if you did engage in such ‘advanced’ transactions then TokenTax is a must, but otherwise TaxBit is more than suitable.
Below we’ll go over the features TaxBit and how they compare to the competitors in terms of price/user-experience/support, as well as go over our experience testing these features — but in short TaxBit is a fantastic low-cost choice for sorting out your cryptocurrency taxes in 2022.
If you’re not sure if TaxBit is right for you check out our other reviews of crypto-tax software companies Koinly and TokenTax, they’re a bit different but good in their own ways, each being slightly more expensive than TaxBit but with a couple extra features TaxBit doesn’t currently have quite yet.
Table of Contents
TaxBit Unique Features:
While most features across popular Crypto-Tax Platforms are quite standardized now with all of them supporting general Defi transactions, exchanges, and wallets as well as 300+ centralized cryptocurrency exchanges + Lending Platforms, portfolio tracking, and options to choose different accounting methodologies (FIFO, LIFO, etc) which can save you massively on taxes, there are some unique features that TaxBit has that are simply better than the competition. We’ll go over them below.
Unlimited Transaction on Every Plan
This may not seem like a big deal if you haven’t done your cryptotaxes in the past, but almost every year despite not being an active trader I’ve had at least 4000 transactions. On other platforms like Koinly that’d mean I’d have to go with their highest-level plan for $279, or on TokenTax I’d need to do at least the Premium Plan for $199, both being quite pricey.
With Taxbit however, due to having unlimited transactions on every plan if I didn’t trade NFT’s or care for tax-loss harvesting I could go with their cheapest plan for just a small fee of $50. That’s WAY cheaper than the competition –– so if you’re tight on budget and used a crypto trading bot, or staked/lended out your cryptoassets you’ll likely want to go with Taxbit for your crypto-taxes this year.
Great Support for the Price
Most crypto-tax companies don’t offer support at all for their cheapest plans, meaning if you have a question regarding your taxes, or anything but a technical issue with the platform it’s self you’re on your own. With TaxBit it’s included in every paid plan, meaning even the $50 plan offers live-chat support, and it’s actually pretty good — you can read further down in the article about our experience with it — but in short they’re competent and helpful, albeit a bit slow.
While most crypto-tax platforms offer this now, there’s still a few that don’t — and in our view if you have big losses of a few thousand dollars or more this is an absolutely essential feature to have with your crypto-tax software, as there’s essentially no downside to tax-loss harvesting in crypto investing and for every loss you ‘harvest’ you’ll generally get a ‘discount’ of around 20-30% off your tax-bill.
This means if you bought bitcoin at $60,000 and bitcoin dropped to $40,000 (like it did) and you harvest those losses you could offset your gains in other crypto assets (or other capital-gains investments like stocks) by $20,000 that year, potentially saving you $7000 in taxes that year. That’s HUGE.
Tax-Professional Review (CPA) and Audit Support
While some other platforms offer this service generally they charge thousands of dollars for it, as crypto-tax professionals are very rare and expensive to employ currently. For example TokenTax, as much as we like the platform, charges $3500 for their cheapest plan that offers this service — just outrageous.
TaxBit on the other hand offers this service for only $500 — which is cheaper than anywhere else we’ve seen it, so if you are worried about audits and/or simply don’t want the risk/hassle of one being on your shoulders then TaxBit is likely the best crypto-tax platform for you in 2022.
TaxBit Biggest Pros & Cons:
TaxBit has many unique features as we’ve covered above, but there are some other pros that are not feature-oriented to the platform, so we thought to make a quick bullet list to give you a summary of them all:
- Good Tax-loss Harvesting Feature
- Clean User-Friendly Interface
- Tax Expert Review + Audit Support at a good price
- Supports DeFi & NFTs seamlessly
- Relatively quick and competent support
- Cheaper than competitors in general
However now there are some downsides to TaxBit that we haven’t gotten into already in the article — we’ll go more in detail further in the article, but here’s a brief summary of the cons of TaxBit:
- Doesn’t work very well for some margin exchanges
- Lacks (Included/Free) FBAR Support
- Flashloans and other advanced DeFi requires manual input in many cases
TaxBit's Pricing for Average Users:
While we can all read their price list and compare it to the competition and see that TaxBit is cheaper than the competition it’s hard to really know which plan you’ll actually need before signing up and trying to file — so I’ll try to help you estimate which plan you need, and if alternatives would be better for you.
Network Plan (Free)
Don’t get excited that they have a free plan — it’s just bait to get you to see how the platform is and works, for most cryptousers you’ll need to then purchase at least the basic plan to be able to complete your tax documents. In some very rare circumstances, you’ll be able to complete your taxes with their free ‘network’ plan but for 99% of cryptocurrency investors it won’t be adequate.
Basic Plan ($50/year)
This is the cheapest adequate crypto-tax plan on the market available in 2022 — it’s the only one that offers so many (unlimited) transactions at such a low price while having support for simple/regular DeFi & NFT transactions and all cryptocurrency exchanges. If you don’t have big losses, or invested in tons of NFTs, then this Basic plan is more than adequate and is arguably the best value plan available in 2022.
Plus+ Plan ($175/year)
If you have losses or lots of NFT investments then this plan is your baseline — an absolute must that’ll pay for it’s self multiple times over.
With that being said this plan isn’t much cheaper than other platforms and so it loses the edge Taxbit plans have to a large degree, so we’d remind you if you have done margin trading it’d be better to go with TokenTax and pay the extra $20 for their similar plan to this one — otherwise this plan is perfectly adequate for 95%+ of cryptocurrency investors and is a great value.
Pro Plan ($500/Year)
If you’re concerned with audits or simply want professional guidance when completing your crypto taxes this would likely be the plan you’d want to go with — otherwise it’s overkill and not necessary. If you’re very wealthy and have lots of crypto investments it’s likely worth paying for this plan just so you don’t have to deal with the hassle of an audit if you do get audited, however for most of us it’s simply not worth the extra cost.
As mentioned before this is the cheapest crypto-tax plan available anywhere in 2022 from what we’ve found that includes tax-professional guidance and review, as well as audit support, so if that’s what you’re looking for you’ve found your match — Congratulations.
TaxBit's Support Quality:
TaxBit’s Support is more than adequate — we tested them with multiple made-up problems and they responded quite quickly and competently, solving complex issues in 23 minutes, even with the mid-day support queue wait included, and answering more straightforward questions in around 13 minutes, including the queue wait of course.
Considering how bad cryptocurrency companies are with support we’re very impressed with TaxBit’s support team, although their response times and wait times are a bit slower than other crypto-tax platforms it’s just by a few minutes, so it’s not a big deal. They’re still doing a good job.
TaxBit vs Competitors:
While I think I’ve done a pretty decent job explaining the differences and demonstrating if Taxbit is better in a category or not so far, there are some things I didn’t mention yet — namely how support for other companies is and how they were when we tested them.
You can of course read our reviews of TokenTax or Koinly in detail, but we’d say TaxBit has slightly slower support than the other platforms, but they do offer support at a lower cost and they’re still very competent. TaxBit’s interface is fantastic, although TokenTax’s is also fantastic, and both have good features. TaxBit shines in it’s cheaper plans and it’s pro plans, where they are best-in-class, while their Plus+ plan isn’t particularly better or worse than other platforms.
If you want a direct comparison of TaxBit vs their competitors check back soon, as we’ll be writing articles comparing them up and down to each of their competitors where it matters — namely features offered, pricing, support quality, and our overall experience using each of them.
Our Experience Testing TaxBit:
I’ve tested filing my taxes on most of the cryptotax softwares this year and Taxbit was one of the easiest and quickest. It took me 71 minutes to complete the process from sign-up to being able to export the final tax documents — this is likely much longer than it will take you as I had to link up around a dozen different exchanges one-by-one as well as manually enter in around 30 p2p transactions, and around a dozen self-custodied wallets that I used for DeFi this year.
While I didn’t have any troubles using the platform I wanted to test support out — so I made up two problems to see how they’d resolve them. The problems I made up were regarding missing transactions due to losing exchange 2fa and an issue with the cost-basis around NFTs/DeFi.
Both made-up problems were responded to appropriately with good advice that would have solved the problems if they actually existed. Both of these issues took 36 minutes in total to resolve, comprising around half the time it took us to complete the test of Taxbit. This includes waiting in the support queue twice, meaning it took approximately 17 and a half minutes to solve a relatively complex problem via support — which is pretty good.
TaxBit Review FAQ's:
Below we’ll cover the FAQ’s we’ve been asked, or encountered, or even had asked ourself about Taxbit when we first were checking them out — If you have other questions feel free to reach us through our contact page and we’ll get back to you as soon as we can — and maybe even add our answer down below.
Is TaxBit Worth It?
Absolutely — if you invested in cryptocurrency then Taxbit is definitely worth it — their tax-loss harvest tool can save you thousands a year in capital gains taxes, and without them it’d be completely unreasonable to fill out your tax forms as traditional tax softwares generally do not support cryptocurrency transactions and require you to input them all manually — which is simply not feasible for most of us.
Does Taxbit offer any sign-up bonuses?
Yes Taxbit offers 10% off you can receive by signing up through this link and entering in code “SUZBrsBw” if a box is available during sign-up. If no box is available they’re currently not running the promotion from what we understand — but last we checked they still had this promotion.
What Countries Does TaxBit Support?
b>Taxbit can be used for most countries around the world, including the USA, Canada, Australia, India, United Kingdom, Germany and most Western European countries, however at this point we’d say using Accointing is better if you live in the UK or Europe.Taxbit also supports most developing countries, but only in so far as preparing a compiled document you can hand to your local accountant — at this point they do not support filling out tax-forms for any country other than the USA, however for most countries you can still use the platform to figure out your crypto-taxes. You'll just need to get a tax advisor to help you fill out your local countries forms if you're not in the USA.
Is it safe to use Taxbit's API Import Feature?
Yes Taxbit is a legit and reputable company and the API feature doesn’t give them access to move or trade on your account — it simply gives them read-only access to allow them to import your transactions as well as the interest you’ve made from lending/staking/saving crypto assets.
Does Taxbit Support Staking & Lending?
Yes Taxbit supports both staking and lending cryptocurrencies and they’ll automatically calculate your tax-obligations related to them when you either connect your exchange API to their software, connect read-only access of your self-custody wallet to them, or simply import a .csv file of your staking/lending rewards.
Our overall Taxbit rating
Taxbit is the best crypto-tax platform for people on a budget that made tons of cryptocurrency transactions — they have a good interface and plenty of good features that are comparable to other platforms but with the benefit of unlimited transactions regardless of the (paid) plan you pick.
The only downside to Taxbit is for people with extremely complex tax situations (flash-loans, NFT-NFT swaps, etc) wil likely need to input some things manually compared to a more ‘premium’ crypto-tax platform like Tokentax.