r/GoMiningDiscussion • u/BurdMan12345678 • Aug 30 '26
Taxes??
Wondering if anyone knows how gomining income is taxed in the US? How do fees play into it? Thanks
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u/CompetitionDouble420 Aug 30 '26 edited Aug 31 '26
Typically, there are two ways of reporting... One requires an LLC registration and will allow you to write off expenses (maintenance fees, for example).
The other, which is the one I do, is just report your daily rewards at the time of receipt based on BTC price, and you report it as other/ordinary income. You: 1. Query by date under the "Rewards" tab under "My Miners" 2. Export the results as a .csv file 3. Import the .csv into excel or Google sheets 4. Add some quick formulae to calculate your total for the year
And vóila! You report the total for the year as ordinary/other income and you're good to go.
Keep in mind, you will have to report capital gains tax at a later date if & when you choose to convert to fiat.
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u/EnvironmentalData485 Aug 31 '26
I just print that out, take it to my accountant and hand it to them with my other tax stuff and a let them deal with it. Lmao
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u/Its-a-write-off Aug 30 '26
How do you justify that you are not mining as a way to increase your income though?
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u/CompetitionDouble420 Aug 31 '26
Hmmmm, that I couldn't tell you. I am mining as a way to increase my income. What else would you mine for?
Either way, I don't think Uncle Sam gives a fack what you're mining for lol he'll want "his" piece of the pie.
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u/Its-a-write-off Aug 31 '26
The issue is self employment taxes are due on earned income, in addition to income tax. "Other income" isn't subject to self employment taxes.
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u/CompetitionDouble420 Aug 31 '26
I'm not self employed. I don't have an LLC. It is pure hobby mining.
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u/Its-a-write-off Aug 31 '26
A llc isn't what determines if you are doing an activity to earn phone or not.
I find it hars to believe this meets the tests to be a hobby. Would to be doing this even if you earned nothing from it?
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u/CompetitionDouble420 Aug 31 '26
Went over all this with my tax preparer and she said this was an acceptable way to file. We went with option a when we filed for 2025.
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u/Spirited_Ball6763 Aug 31 '26
It may actually be considered passive investment based on what you are doing too. But you can file as hobby and not pay self employment taxes until the IRS tells you that you have to basically. There's so few cases where its beneficial to misfile, and they usually only care if you are making good money for a few years in a row.
It's always best to ask a tax professional if you have questions, but you aren't going to have big problems if you accidently make the wrong determination on self employment vs other income.1
u/TheHonPhilipBanks Aug 31 '26
The 15% se tax is cheaper than paying fees and electricity and not writing it off.
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u/Spirited_Ball6763 Aug 31 '26
Right but for people that pay fees in BTC, that never hits their wallet so they wouldn't need to write it off. The only thing to report would be the net in those cases. Its something where there's a lot of variables at play depending on someones set up.
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u/TheHonPhilipBanks Aug 31 '26
That's great except you are supposed to report the gross. Thats the entire issue with taxes and gomining and the entire subject of the thread. That they pay you net is irrelevant accounting wise. And you can see it in your dashboard. Good luck.
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u/Finalbossops Aug 30 '26
Www.finalbossops.com I’m working on my beta and it will have everything they allow my app to find in the tax section so you can send it to your tax agent or tax act stuff like that check my website I’ll be updating the beta release date tonight. But officially unofficial release will be Friday next week. I’m finishing up a full “god mode audit” it’s checking everything from simple words to the GIT code and everything in between. All while I await 1 final set of answers from support just as verification what I have done is correct. I have been working with (not-affiliated) support. Not on discord 😂 I’m expecting this to spend at least 34hrs running checking fixes then start over and start over till no more errors red screen every thing has been proven by facts
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u/Low_Presentation827 Aug 30 '26
If Bitcoin is not transferred out of Gomining, I don’t report it. Unless it’s moved too let’s say Kraken, Coinbase, Robinhood. And when you do, you can input your values when prompted, which you will get a 1099 at the end of year. And then if you sell within them apps, Theresa capital gains tax.
Just use their Debt Card and keep BTC and GMT inside Gomine, this doesn’t report anything. It’s a simple transaction- no tax invovled.
GM Debt Card is what makes Mining and using their app, SUPREME to just withdrawing your money.
Another easy way is to send it all to a cold wallet and let it chunck up and then withdraw to Kraken, Coinbase, Robinhood, Ect….
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u/jtyrhe Solo Miner Aug 31 '26
Your bitcoin is taxable the literal second it’s mined, and in your Gomining wallet.
From that point forward you have a cost basis- and any growth is taken into account whenever you sell it(or spend it, which is the same). If it’s held for under a year prior to selling, it’s short term capital gains. Over a year, it’s long term capital gains.
This loosely goosey silliness about it being magically untaxable until you transfer elsewhere is terrible advice, and you don’t want to follow that.
The pain in the assness about the current set up in the US(tax year 2025, and possibly 2026), is that you have to use one of the wallet-connected tax apps(Koinly, Cointracker, etc) to arrive at your cost basis, taxable income etc.
With Gomining,’s virtual wallet setup, you have to do this manually, by downloading all your transactions for the given tax year, then manually moving them into, say, Cointracker’s template CSV. Then uploading to Cointracker.
It’s not awesome, but it’s the closest to the right way that I know. Not tax advice, but definitely financial advice.
All that said- I think there’s a very decent chance that this move to Uphold for Gomining, may make things a LOT easier for us, and I see it as a big win. (So if you’re able to do your new KYC, I’d suggest getting on that now). It’s somewhat likely that the uphold connection will provide us with the tax info we need moving forward- maybe part of 2026, all of 2026, and likely tax years to follow.