Crypto Tax Software Fills Critical Gap for IRS Form 1099-DA

The IRS now requires U.S. exchanges to send Form 1099-DA to both filers and the IRS, listing gross proceeds from every digital asset sale.

Crypto tax software fills a critical gap in this process by importing transaction history from exchanges, wallets, and blockchains, reconstructing cost basis across every hop a coin took, and generating the forms a tax preparer or filing platform needs.

Koinly stands out as the best all-around pick for most crypto investors, with its free plan covering real functionality, not just a stripped-down demo. Paid plans are priced per tax year rather than as an ongoing subscription, with cost scaling to how many transactions the account holds.

CoinTracker is the top choice for Coinbase users on TurboTax, thanks to an official partnership between the two companies. It also connects to hundreds of exchanges and wallets, making it a natural fit for investors filing outside American borders.

Crypto tax software has become increasingly important as the IRS begins phasing in cost basis reporting for Form 1099-DA. This gap is where crypto tax software earns its keep, reconstructing cost basis across every hop a coin took and generating the forms a tax preparer or filing platform needs.

For an investor who wants one tool to handle both a U.S. return and international tax obligations, Koinly remains the most balanced option in the category. The platform also exports directly to filing platforms such as TurboTax and TaxAct for U.S. users who want to fold crypto gains into a broader return.

Crypto tax software is not one-size-fits-all. Each platform has its strengths and weaknesses, with some exceling at DeFi support while others shine with country coverage or price transparency.