Tax prep is rarely fun, but it can be an especially big nightmare for active traders. When it comes to your taxes, you could be facing a daunting pile of paperwork and a hefty tax bill. The IRS will be paying close attention to your trading activity, and if you don’t report it correctly, they’ll take a big bite out of your profits. The taxation rules for day traders are constantly changing, too. Failing to stay up-to-date on those taxation changes will cost you.

You can make tax time a lot easier on yourself (and a lot easier on your bank account) with tax software made for day traders. Good software will help you automate your trading activity while looking for ways to reduce your tax obligation. It will also update automatically with new tax regulations to take the guesswork out of reporting. Here are ten tax services to consider when you get ready to file.

Top Pick

See our best tax software picks for 2021, whether you have a simple tax return you can file for free or you have more complicated tax needs. I have a large number of transactions (over 5,000) from daytrading last year, and am not able to import into turbotax software.I've tried various software programs (ie. Trademax) that will import into turbotax as txf file, but am a little ucertain as to the accuracy of. Re-loader activator 3.0 beta download.

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1. H&R Block

If you want to stick with a tried-and-true company for your tax preparations, H&R Block is a good choice. It is our #1 pick for active traders and investors because when you have a large number of buy and sell orders, it’s sometimes best to have an accountant check your tax returns; even if you are confident in doing your own taxes. H&R Block offers the option to have an accountant prepare your taxes for a very cheap rate and they are quite familiar with all kinds of active trading platforms: TD Ameritrade, Coinbase, Etrade, you name it. Started in 1955, it’s become one of the biggest names in tax preparation. While they don’t offer tax software for active traders specifically, their software will do what you need it to do. It will generate a Schedule D, calculate your capital gains taxes, and prepare your paperwork to file your taxes. H&R Block has a free option if you want to take the time to prepare your taxes on your own. Their UI is the friendliest and most intuitive UIs we have found of all tax preparation softwares. It’s hard to believe they give it away for free, but they do. They provide you with easy options for you to import your portfolio and trades from your broker.

When I see that I have already a couple dozen transactions to track for long term or short term capital gains, I just like using their tax preparation option that includes having an accountant check my returns. It provides for an extra layer of security if you were to be audited by the IRS, and it doesn’t cost much at all as it starts at $69.

Pros

In-person help in one of their branches is available when you need it
Audit support will help you prep and organize your tax information in case of an audit
Millions of individuals and businesses use this long-established company every year for tax prep

Cons

You’ll need to track your trades elsewhere and import the information to prep your tax return
If you need help, you could end up waiting in line at one of their locations

2. TurboTax

TurboTax is Intuit’s full-featured tax software, and it has good options for active traders, too. This online tax service makes it simple to file. Start by answering questions about your life, income, and trading activity. TurboTax will then walk you through everything you need to fill out to complete your tax return. Intuit also owns Quicken and QuickBooks, so syncing them with TurboTax will make the filing process even faster. The tools included in their more expensive packages will help you manage even the most complicated tax returns.

Pros

Makes it easy to report your investment income
Calculates your capital gains taxes for you
Capable of handling thousands of transactions so it’s great for busy traders

Cons

Best Day Trading Tax Software

You’ll need to purchase the premier plan to get all the features you need to report investment income
State tax reporting is more expensive than with some other programs

3. GainsKeeper

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