How to Report Crypto Mining on Taxes

Cryptocurrency mining can be a lucrative activity – but it can also lead to a hefty tax bill. In this post, we’ll explain how to report crypto mining on your taxes.

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The general rule for reporting cryptocurrency mining on your taxes is that if you mined it, you owe taxes on it. The IRS treats cryptocurrencies as property for tax purposes, which means any income you earn from mining is considered taxable income.

If you’re mining cryptocurrency as a business, you’ll need to pay self-employment tax on your earnings. This is in addition to regular income tax. The self-employment tax rate is 15.3%, which means you’ll need to pay an additional 15.3% in taxes on your mining earnings.

In most cases, you’ll be able to deduct the cost of your mining equipment and other expenses on your taxes. This will help offset some of the cost of your mining operation.

When in doubt, it’s always best to speak with a tax professional about how to report your cryptocurrencymining activity on your taxes.

What is Crypto Mining?

Crypto mining is the process of verifying cryptocurrency transactions and adding them to the blockchain public ledger. Miners are rewarded with cryptocurrency for their work.

Mining is an important part of most cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Monero. It helps to keep the network secure and running smoothly.

Crypto mining is a resource-intensive process that can be difficult to profit from. However, if you are able to set up a successful operation, you can potentially earn a lot of money.

How to Report Crypto Mining on Taxes

Crypto mining can be a great way to earn income, but it’s important to know how to report it on your taxes. The IRS has specific rules for reporting income from mining, and if you don’t follow them, you could end up owing a lot of money. In this article, we’ll go over the basics of how to report crypto mining on your taxes.

Short-term gains

Short-term gains on cryptocurrency mining are taxed as regular income according to the marginal tax rates in the US. The current marginal tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%. If you are in the 10% or 12% marginal tax bracket, you will owe long-term capital gains taxes on your crypto mining profits at a rate of 0%.

Long-term gains

The tax rate on long-term capital gains (collectibles and some metals are taxed at a maximum rate of 28%) depends on your tax bracket. For most people, it will be 15% or 20%. But if you are in the 10% or 12% tax bracket, it will be 0%.

Short-term gains are taxed as ordinary income according to your tax bracket. So, if you are in the 22% marginal tax bracket, your short-term capital gains will be taxed at that rate.


Cryptocurrency mining can be a lucrative activity, but it’s important to remember that any income you generate from mining is subject to tax. The IRS treats cryptocurrency as property for tax purposes, which means any profits you make from mining will be subject to capital gains tax. So, if you’re thinking about getting into crypto mining, make sure you’re aware of the tax implications first.

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