TokenTax Review

TokenTax is a crypto-first tax filing company. The company specializes in crypto tax optimization and it has a stand-alone product that calculates the taxes due on crypto transactions.

In addition to the stand-alone product, the company offers full-service filing including back-tax filing for crypto traders who have inaccurate data going back to 2014.

If you have a complicated crypto tax situation, TokenTax may prove to be valuable to you. Here’s what you need to know about it.

TokenTax logo
  • Crypto tax software and full-service crypto tax accounting
  • Can import trade data from every exchange
  • Reports can be imported directly into TurboTax

Cryptocurrency Tax Reports

Unlimited Through CVS File Import

Some Crypto Tax Basics

The IRS treats crypto tokens and NFT like securities (think stocks). When you buy or earn a token, that token has a cost basis. The cost basis is the value of the token (in $USD) at the time of purchase. People realize capital gains and losses when they sell or trade the tokens.

The gain or loss realized depends on the value of the token at the time you sell it. For example, a trader purchased 10 BTC on January 1, 2019. At the time, BTC was worth $7,175.50. The trader’s cost basis in this transaction is $71,755. This is the cost basis, even if the trader paid using another token.

This trader sells all 10 BTC on July 20, 2021, for $29,789.94 per token. The amount realized is $297,899.40. The IRS considers this amount realized, even if the trader receives payment in the form of another crypto token. On this transaction, the trader incurs a long-term capital gain of $226,144.40. The IRS will tax the trader on this basis.

Crypto tokens are also eligible for tax-loss harvesting. That means you can use realized capital losses (from selling tokens that have depreciated in value) to offset some or all of your realized capital gains.

For most traders, there crypto transactions will be taxed as investments in the ways described above. However, it should be noted that there are also times that cryptocurrency can be taxed as ordinary income as well. Examples would include if you received crypto for mining or staking or as interest on a loan.

What Is TokenTax?

TokenTax is a tax filing company that offers tax-filing services in 18 countries including the United States. Founded in 2017, the company offers both full-service filing, and a standalone application that calculates taxes for crypto transactions.

As a tax-first company, TokenTax specializes in tax minimization strategies including tax-loss harvesting. It also builds in IRS-compliant logic related to margin trading and other aspects of crypto trading.

Users who opt to use TokenTax can generate Form 8949 for cryptocurrency. Or they can have TokenTax file their complete return for them.

TokenTax – Is It Free?

TokenTax does not offer any free version. Users must pay for a specific tax year before they can start using the service.

What’s New In 2022?

TokenTax now allows users to create accounts without paying for the software. This allows curious people to gain an understanding of the look and feel of the software without filing.

Aside from this upgrade, the software does not appear to be dramatically changed from previous years. The company still supports manual data entry and CSV uploads from exchanges that don’t have API connections.

Does TokenTax Make Tax Filing Easy In 2022?

The TokenTax software will ease tax filing for crypto traders. The software automatically calculates capital gains and losses and recommends tax-loss harvesting options. This allows traders to gain the benefits of tax minimization strategies without all the effort.

DIY tax filers who use TurboTax will be happy to learn that TokenTak integrates directly with the tax filing software. And unlike nearly all of its competitors, TokenTax also has a CPA and full tax filing team available for hire.

TokenTax’s tax experts can not only file your taxes on your behalf, but can provide “white glove” service if you need help piecing together past gains and losses based on defunct exchanges. While extraordinarily expensive, this is a service that most accountants simply don’t offer.

TokenTax Notable Features

TokenTax is a tax-first crypto accounting company. It will file your entire return, or create reports for you to file on your own. These are some of the most important features.

Imports From Every Exchange

TokenTax says that it’s the “only cryptocurrency tax calculator that connects to every crypto exchange.” Dozens of exchanges, including the ones shown in the screenshot below, can be connected directly via API.

Screenshot from the TokenTax website that shows its current API integrations

But even if API integration isn’t available, TokenTax can still import your trade data. All you have to do is upload a CSV file from your exchange. If TokenTax’s software can’t automatically process the report, its human staff members will personally take care of adding the trades to your account.

Tax-Loss Harvesting

TokenTax works to minimize users’ tax burden by creating opportunities for tax-loss harvesting (where legal). This focus allows traders to take advantage of some of the times that trading didn’t work out.

Supports Margin Trading

TokenTax supports margin trading and offers API integrations to most exchanges that support margin trading. Users unlock some margin trading support at the Premium level, but may need to upgrade to Pro depending on the exchanges they used.

TokenTax Notable Drawbacks

TokenTax offers an excellent user experience, and it offers solutions for crypto traders using sophisticated techniques (like margin trading). However, the software isn’t perfect. These are a few drawbacks.

No Free Trial

TokenTax doesn’t offer a free trial. To start using the software, you need to pay. With super-high prices, this can be a waste of money if the software doesn’t do what a user needs it to do.

API Integration Locked At Certain Levels

TokenTax does not universally unlock API integrations. The most common exchanges are unlocked at the Premium level but others are not unlocked until the VIP tier.

Steep Increases In Price

TokenTax has a competitive $65 pricing tier (though it only supports Coinbase), but prices increase steeply after that. Users who want to access all margin exchanges via API will have to pay $799 per tax year.

Depending on how many transactions you’ve done, you could quickly find yourself in the $799 tier.

TokenTax Online Pricing Plans

TokenTax charges fees based on several factors. Each tier unlocks more trades, more API connections to exchanges, and different tax minimization strategies. The VIP level includes consultations with crypto tax experts who can help figure out tricky issues related to defunct exchanges.

Coinbase and Coinbase Pro only

All traditional exchanges, but only supports margin exchanges that provide API access,which includes: BitMEX, Deribit, Bybit

All exchanges (traditional and margin)

All exchanges (traditional and margin)

Help with reconciliation on defunct exchanges

How Does TokenTax Compare?

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TokenTax logo
CryptoTrader.Tax logo
ZenLedger logo

Upload Any Exchange History CSV File

Tax Software Integrations

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Is It Safe And Secure?

TokenTax uses encryption and read-only access to keep information safe and secure. Users should not worry that TokenTax will steal their tokens or their personal information. The company also protects user information with multiple forms of security.

When users connect to APIs, they will be prompted for multiple forms of authentication. However, TokenTax itself does not require multi-factor authentication for user accounts. A simple email and password combination is used initially. This oversight could be the company’s largest security risk.

How Do I Contact TokenTax?

Is It Worth It?

Overall, TokenTax offers a great product, but it’s not competitively priced. Although TokenTax heavily advertises that it supports margin trading, it’s not the only company that supports this. In 2022, most crypto traders should pass on TokenTax. Traders can find similar crypto tax filing software at lower price points.

TokenTax FAQs

Let’s answer a few of the most common questions that people ask about TokenTax:

Can TokenTax help me file my crypto investments?

Yes, TokenTax can help tax filers complete their taxes. The company can file your entire return on your behalf.

Can TokenTax steal my crypto?

No, TokenTax uses read-only APIs to get information from your wallet or the exchanges you use. It cannot steal your information.

Do I need to report my crypto wallet transfer data to the IRS?

It depends. While moving cryptocurrencies between wallets is not a taxable event, certain events that tax place inside your wallet could be taxable such as earning interest, receiving staking rewards, or receiving crypto as payment for services rendered.

Can international traders use TokenTax?

Yes, TokenTax says that its reports can work for any country and can provide results in whatever currency you choose.

TokenTax Features

  • Basic: $65
  • Premium $199
  • Pro: $799
  • VIP: $2,500

Unlimited through CVS file import

Exchange API Integrations

  • Basic: Coinbase and Coinbase Pro only
  • Premium: Unlimited
  • Pro: Unlimited
  • VIP: Unlimited

Tax Software Integrations

Minimization (TokenTax’s custom HIFO algorithm)

Tax-Loss Harvesting Dashboard

On the Premium, Pro, and VIP Plans

On the Premium, Pro, and VIP Plans

Customer Service Phone Number

Customer Service Email Address

Web/Desktop Account Access




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