Not tax advice ยท last updated 25 October 2026
Mining and node income
review with a tax pro. Income equals the fair market value you enter. Expenses are not deducted here.
Notice 2014-21 treats virtual currency you mine as ordinary income when you receive it, at fair market value. That value is also your basis. This page does not invent a price. If you leave fair market value blank, income stays blank.
Expenses you type are displayed and are not subtracted. This page does not decide whether the activity is a hobby or a business. An optional later sale uses this basis and the same holding-period rule as the worksheet.
FAQ
Is mining capital gain?
The receipt is ordinary income at fair market value. Gain or loss on a later sale is separate, and the basis is that fair market value.
Can I deduct electricity here?
No. The amount is shown as you entered it and is not deducted. Whether it is deductible is outside this page.
What if the pool did not state a dollar value?
Leave fair market value blank. Do not substitute zero.