Koinly Integration

Koinly is a specialized crypto tax platform. Here's how to use TaxFormatter with it.

Koinly Overview

Koinly automatically connects to exchange APIs and wallets. TaxFormatter works great with Koinly's manual import feature.

Best for:

• Multi-exchange traders
• DeFi activity
• Automated tracking
• Detailed tax reports

Connecting Koinly + TaxFormatter

Option 1: Direct API (Recommended)

Connect your exchange directly to Koinly:

1. Log into Koinly
2. Go to Settings → Exchange & Wallet Connections
3. Click "Add Exchange"
4. Select your exchange (Binance, Coinbase, etc.)
5. Authorize with API keys
6. Koinly auto-imports all transactions

Advantage: Automatic, always up-to-date
Disadvantage: Requires API keys

If you use this: You don't need TaxFormatter CSV for Koinly import.

But still use TaxFormatter to:

• Verify Koinly data is correct
• Get plain English explanations of flagged issues
• Cross-check before filing taxes

Option 2: Manual CSV Import (With TaxFormatter)

If you can't use APIs or want to verify data:

1. Get your formatted CSV from TaxFormatter
2. Import into Koinly manually
3. Koinly reconciles with any API-connected data
4. You verify everything before export

This is where TaxFormatter + Koinly combo excels.

Step-by-Step: Importing CSV to Koinly

Step 1: Download TaxFormatter CSV

1. Upload your exchange CSV to TaxFormatter
2. Download the formatted file

Step 2: Go to Koinly Import

1. Log into Koinly.io
2. Go to Portfolio (top menu)
3. Click Add Transactions → Manual Import
4. Or click Import CSV if available

Step 3: Prepare Your File

If Koinly requires different columns:

1. Open TaxFormatter CSV in spreadsheet
2. Koinly prefers columns:
   • Date
   • Asset
   • Type (BUY, SELL, etc.)
   • Amount
   • Price
   • Fee

TaxFormatter provides all of these, so usually no prep needed.

Step 4: Upload CSV

1. Click Choose File
2. Select your TaxFormatter CSV
3. Click Open

Step 5: Map Columns

Koinly will ask you to map columns:

TaxFormatter Column → Koinly Field
Date → Date
Pair → Bought/Sold (extract from pair)
Amount → Amount
Price → Price
Fee → Fee
Type → Type (BUY, SELL, DEPOSIT, etc.)

Usually auto-maps correctly.

Step 6: Verify Transactions

Koinly shows:
Transaction 1: BUY 0.5 BTC @ $42,525.50
Transaction 2: SELL 0.5 BTC @ $45,000
...
Total: 847 transactions imported

Spot-check a few transactions against TaxFormatter CSV.

Step 7: Confirm Import

Click "Import" or "Confirm"

Koinly processes transactions and calculates gains/losses.

Using TaxFormatter + Koinly Together

Workflow

Step 1: Upload to TaxFormatter
  → Get formatted CSV + plain English explanations

Step 2: Review TaxFormatter results
  → Understand what issues exist
  → Read explanations

Step 3: Import formatted CSV to Koinly
  → Cleaner data than raw exchange export

Step 4: Verify in Koinly
  → Cross-check calculations
  → Confirm any flagged items

Step 5: Export tax report from Koinly
  → Use for TurboTax, CPA, or filing

Handling Flagged Items in Koinly

Wash Sales

If Free tier (flagged):

1. TaxFormatter flags the wash sale
2. You see note in TaxFormatter
3. Manually tell Koinly to apply wash sale rule
4. Koinly recalculates cost basis

In Koinly:

1. Find the flagged transaction
2. Click edit
3. Look for "Wash Sale" option
4. Check the box and enter related transaction
5. Koinly auto-adjusts basis

Staking & Airdrop Income

In Koinly:

1. Import staking/airdrop transactions with Type: STAKING or AIRDROP
2. Koinly recognizes the type
3. Treats as ordinary income (not capital gain)
4. Reports in income section (not gains/losses)
5. TaxFormatter notes explain fair market value
6. You can reference TaxFormatter notes if Koinly asks

Comparing TaxFormatter Flags to Koinly

Koinly has built-in tax intelligence. It might flag issues too.

If Koinly flags something different from TaxFormatter:

1. Check TaxFormatter first

   • It's specialized for tax issues
   • Read the detailed explanation

2. Cross-reference in Koinly

   • See if Koinly has additional context
   • Sometimes they flag different things

3. When in doubt, contact support

   • TaxFormatter: support@taxformatter.com
   • Koinly: Koinly support chat
   • Tax pro: For conflicting advice

Multi-Exchange with TaxFormatter + Koinly

Scenario: You use Binance and Coinbase

Option A: API both exchanges

1. Connect both to Koinly directly
2. Don't need TaxFormatter
3. Use TaxFormatter to verify/cross-check

Option B: Use TaxFormatter

1. Export from Binance → TaxFormatter → Import to Koinly
2. Export from Coinbase → TaxFormatter → Import to Koinly
3. Koinly consolidates both
4. Verify against TaxFormatter data

Option C: Hybrid

1. Connect Binance API to Koinly
2. Export Coinbase to TaxFormatter
3. Import TaxFormatter CSV to Koinly
4. Best of both: automation + verification

Koinly Export for Taxes

After importing and verifying:

1. Go to Tax Reports
2. Select your country (US)
3. Select tax year
4. Click Generate Report

Koinly creates:

• Summary of gains/losses
• Schedule D format
• Form 8949 format
• Exportable to PDF

Use this for your CPA or TurboTax.

Common Koinly + TaxFormatter Issues

Issue 1: Transaction Count Mismatch

Problem: TaxFormatter shows 847 transactions, Koinly shows 840

Solution:

1. Check for deposits/withdrawals (Koinly may exclude)
2. Check TaxFormatter doesn't include duplicates
3. Filter by date range in both
4. Ask support if discrepancy persists

Issue 2: Cost Basis Different

Problem: Koinly calculates basis differently than TaxFormatter

Solution:

1. TaxFormatter includes fees in basis (correct)
2. Check Koinly settings: "Include fees in basis?"
3. May need to adjust Koinly settings

Issue 3: Wash Sale Not Recognized

Problem: You told Koinly about wash sale, but it didn't adjust

Solution:

1. Koinly has own wash sale rules
2. May not work exactly like IRS
3. Confirm the treatment with your CPA

Issue 4: Income vs Gain Mixed Up

Problem: Staking income showing as capital gain

Solution:

1. Check transaction Type in Koinly (should be STAKING, not BUY)
2. May need to manually correct in Koinly
3. TaxFormatter notes will explain what it should be
4. Contact Koinly support if persists

Best Practices

1. Download TaxFormatter first

   • Gets you clean, formatted data
   • Explanations help you understand

2. Review TaxFormatter notes

   • Read the AI Insights panel
   • Understand any flags
   • Prepares you for Koinly

3. Import to Koinly

   • Use formatted CSV
   • Data is cleaner than raw export
   • Reduces Koinly errors

4. Verify in Koinly

   • Cross-check totals
   • Spot-check transactions
   • Make sure gains/losses look right

5. Keep TaxFormatter CSV

   • Archive with your return
   • Good for audits
   • Proves your source of truth

When to Use TaxFormatter + Koinly

✅ Multiple exchanges
✅ Complex DeFi activity
✅ Want verification of data
✅ Need detailed explanations
✅ Want clean import into Koinly

Final Step: Export to TurboTax

After using Koinly:

1. In Koinly, generate Tax Report
2. Download PDF or CSV
3. Use in TurboTax or give to CPA
4. File taxes with confidence

TaxFormatter → Koinly → TurboTax → IRS ✓