If you earn cryptocurrency by mining it, it's considered taxable income and might be reported on Form 1099-NEC at the fair market value of the cryptocurrency on the day you received it. You need to report this even if you don't receive a 1099 form as the IRS considers this taxable income.

How do I report mining income on 1040?

To report business income from mining, the taxpayer will report the amount received as self-employment income and any related mining business expenses on Schedule C. The self-employment income is then translated from Schedule C to Form 1040 Schedule 1.

Do I have to pay taxes on mined Bitcoin?

Yes, crypto miners have to pay taxes on the fair market value of the mined coins at the time of receipt. The IRS treats mined crypto as income. When you successfully mine cryptocurrency, you trigger a taxable event.