TokenTax Review 2022 - The Easiest CryptoTax Software?
TokenTax is one of the best and easiest to use Cryptotax tools in 2022 — not only does it have one of the best and easy to use interfaces but when we tested it out ourselves and went through the process to file our taxes this year with TokenTax the process was one of the fastest and painless of any of the cryptotax tools, coming in at just under an hour, and that’s despite us having dozens of exchanges, DeFi wallets, and some P2P transactions we needed to input manually.
Tokentax is generally a bit pricier than other alternatives like Koinly or Taxbit, so if you’re budget-conscious and didn’t do lots of ‘advanced-DeFi transactions’ like flash-loans, then Tokentax is likely a bit overkill — but they are the easiest, best, and most comprehensive crypto-tax software in our view, so paying a premium for that makes sense for some.
If you DID do ‘advanced-DeFi’ transactions for example, did margin trading, have missing transactions, or really anything complex, then Tokentax is without a doubt be the platform I’d say is best to use in 2022.
Below we’ll go over the features TokenTax, 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 TokenTax is a great choice for sorting out your cryptocurrency taxes in 2022.
Table of Contents
TokenTax Unique Features:
While most features across Crypto-Tax Platforms are quite standardized now with all of them supporting general DeFI 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 TokenTax has that are simply better.
Tax Loss Harvesting
TokenTax has a particularly simple and user-friendly Tax-Loss Harvesting page (shown above) that works year-round to help you harvest those losses before year-end, and in my opinion, is the best in this regard. They’ll shown you which coins you have losses in and more importantly where the specific coins you have losses are on held — this is essential for people who hold balances on different exchanges or lending platforms like we do.
For example this year we had losses on a DeFi coin we hold on both a private wallet as well as Celsius Network (to earn yield), TokenTax specified the coins on Celsius Network had a greater loss (as we bought them at a higher price before the coins we bought on the private wallet), and thus we sold those coins to harvest the losses rather than the ones on our private wallet, which didn’t have much of a loss.
Margin & Derivatives Trading Support
While you can technically file margin trading crypto-taxes on most crypto-tax platforms in truth it’s not easy and it’s quite likely to get something wrong as you need to do lots of things manually on most crypto-tax platforms currently when it comes to Margin trading.
To put it simply if you used Bitmex or Bybit, or other margin trading platforms, TokenTax is definitely the best option in 2022.
FBAR Form Support
Not all crypto-tax softwares offer this feature yet and it’s often an overlooked form that us cryptocurrency investors are supposed to file — TokenTax will notify you if you need to file an FBAR due to trading/holding large amounts of crypto on a non-US exchange for too long, and they make the process incredibly simple.
This is an amazing feature and we hope other crypto-tax softwares implement it — as while we haven’t heard anyone getting in trouble for not filling this form yet it’s a very real possibility as the US begins to regulate cryptocurrencies more and more, and with it clamp down on those who forgot to file such forms in the past.
The TurboTax of Crypto Industry
While not a single feature, tokentax is so simple and userfriendly that I’d describe them as the ‘TurboTax of the Crypto Industry’ in the sense they’re super easy to use and have an extremely polished interface that makes everything simple, with no complex jargin or terms, however that comes at a slight premium.
Some of the CryptoTax platforms aren’t very simple and polished, and while they work perfectly fine they aren’t a pleasure to use like TokenTax.
TokenTax Biggest Pros & Cons:
TokenTax has many unique features as we’ve covered above, but there’s also 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:
- Fast & Competent Support
- Great Tax-Loss Harvesting Feature
- Incredibly Simple Polished Interface
- Full-Service Premium Filing Option
- Crypto-Tax Professional Guidance Available
- Supports Margin-Trading & Advanced DeFi Trades
However now there are some downsides to TokenTax that we haven’t gotten into quite yet in the article — we’ll go more in detail further in the article, but here’s a breif summary of the cons of TokenTax:
- Most benefits are excluded for cheaper plans
- Overall more expensive than other platforms
- Doesn’t offer a Free-Trial or Significant Discounts
- Significantly Raised Prices This Year
The disadvantages are largely just around price as you can see — if you don’t mind spending a couple hundred dollars to have a hassle-free crypto-tax experience then they’re a fantastic option, however if you’re price-sensative we’d say it’d be wise to check out Koinly or Taxbit to see if they would fit your needs, as they’re quite a bit cheaper for most of their plans.
TokenTax Pricing for Average Users:
While we can all read their price list and compare it to the competition and see that TokenTax is a bit more expensive 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.
Basic Plan ($65/Year)
TokenTax’s Basic plan only does up to 500 transactions and doesn’t have API access for most exchanges meaning you’ll need to get the .csv tax document from the cryptocurrency platform and manually upload it to Tokentax, or manually enter your transactions, which is quite the downside if you ask me.
500 transactions isn’t much, and they don’t allow tax-loss harvesting or DeFi or anything, so this plan really is only suitable if you’re a buy-and-hold investor who uses Coinbase or just one or two exchanges in total, and doesn’t have/use private blockchain wallets. Otherwise you’ll need a more expensive plan, or need to go with another platform — TaxBit’s Basic $50 plan or Koinly’s $49 Newbie Plan are better choices for the price-sensitive investors with simple tax-situations.
Premium Plan ($199/Year)
This is the Holly Grail of TokenTax’s Plans in our view — it’s the best value overall for the majority of people in the cryptocurrency space in our view — and that includes compared to other platforms. It has enough transactions to suit 95% of investors, has margin support for traders, DeFi Support, API integration for every cryptocurrency exchange that has user-APIs, and it even has tax-loss harvesting.
Absolutely fantastic value, as while it’s still a hair more expensive than other platforms it’s only $10-20 more expensive, but with the ease of use and extra features that come with TokenTax it’s more than worth it. The only reason not to go with this plan is if you need FBAR filings or did fancy DeFi stuff like Flash-Loans.
Pro Plan ($799/Year)
I’m not going to fluff this plan up — it’s basically a Premium Plan with more transactions (for traders basically) and has FBAR support. If you need the transactions go for it, but in terms of FBAR to be honest it’s not that difficult to file it on your own — so unless you need the higher supported transactions or are high-networth and spending a couple hours to save $600 isn’t worth your time to you, we wouldn’t bother with this plan.
VIP Plan ($3500/Year)
The obvious plan for VIPS — it’s literally the most comprehensive tax offerings we’ve seen anywhere for cryptocurrency investors, and if you’re a high-volume trader, operate a business involved in cryptocurrency trading/investing, or simply a DeFi degenerate who took advantage of Flash-Loans and made a killing, this is absolutely the plan for you.
Lets be real, if you need the VIP plan you know it and feel like a VIP — sign up if that’s you. You don’t have another real option in 2022, TokenTax is your match.
TokenTax Support Quality:
TokenTax’s Support is more than satisfactory — we tested them with multiple made-up problems and they responded relatively quickly and competently, solving complex issues in under 15 minutes, even with the mid-day support queue wait included, and answering more straightforward questions in a few minutes.
Considering how bad cryptocurrency companies are with support we’re very impressed with TokenTax’s Support Team.
TokenTax vs Competitors:
While I think I’ve done a pretty good job explaining the differences and demonstrating if TokenTax 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 TaxBit or Koinly in detail, but basically we’d say TokenTax has better support at the small-medium levels than the other platforms and they have significantly more features, however their lower priced package isn’t really competitive when compared to their competitors. All of their interfaces are good, but TokenTax’s is a bit more user-friendly and responsive.
If you want a direct comparison of Tokentax 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 TokenTax:
I’ve tested filing my taxes on most of the cryptotax softwares this year and TokenTax was one of the easiest and quickest. It took me 54 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 sound-advice that would have solved the problems if they actually existed. Both of these issues took 27 minutes in total to resolve, comprising around half the time it took us to complete the test of TokenTax. This includes waiting in the support queue twice, meaning it took approximately 13 and a half minutes to solve a relatively complex problem via support — which is quite good.
TokenTax Review FAQ's:
Below we’ll cover the FAQ’s we’ve been asked, or encountered, or even had asked ourself about TokenTax 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 possibly even add our answer down below.
What Countries Does TokenTax Support?
TokenTax can be used for most countries around the world, but is particularly good for use in the USA, Canada, Australia, India, and the United Kingdom — this is where they focus on doing business in and ensuring they fulfil the reporting requirements of the countries. They have fairly good support for 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.
TokenTax 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 most developing countries, unfortunately.
Is TokenTax Worth It?
Absolutely — if you invested in cryptocurrency then TokenTax is absolutely worth it — using 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 TokenTax offer any sign-up bonuses?
Unfortunately no — they do offer 5% off you can receive by signing up through this link and entering in code “SECRET_5” 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 best of luck to you!
Does TokenTax Support Staking & Lending?
Yes TokenTax 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.
Is it safe to use TokenTax’s API Import Feature?
Yes TokenTax 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.