Crypto Tax Software: Key Considerations for the 2025 Tax Season in the U.S.

For U.S. taxpayers who engaged with cryptocurrency in 2024, utilizing crypto tax software is essential for calculating gains and losses. Unlike traditional stock brokers, crypto exchanges are not required to issue consolidated tax forms for the 2024 tax year, placing the onus on the taxpayer to accurately calculate and report crypto-related gains and losses. Starting in 2025, crypto exchanges will be required to issue Form 1099-DA. Crypto tax software aggregates transactional data from various wallets and exchanges, reconciles activity, and computes gains and losses based on applicable tax rules. These platforms typically operate on an annual subscription basis. Key factors to consider when selecting crypto tax software include the number and type of integrations (API and CSV), volume processing capabilities, user interface features for manual adjustments and labeling, and support for the IRS's per-wallet accounting method, effective January 1, 2025. Credibility, legitimacy, pricing tiers, and additional perks like educational resources and tax planning tools should also be evaluated.