If these are not sales as I think you suggest, we can make it much easier.
If you earn cryptocurrency by mining, it counts as part of your regular taxable income. You owe tax on the entire fair market value of the crypto on the day you received it, at your regular income tax rate.
Crypto mining can be taxed as either a Hobby or a Business
To post as a Hobby:
With your return open, go to the Federal
1. Wages & Income
2. Less Common Income
3. next to Miscellaneous Income, 1099-A, 1099-C
4. Select Other Income not already reported on Form W-2 or 1099
6. Continue through the interview
To Post as a Business:
If you have a business, it can be entered directly into the business income
section of the return.
Staking will generate passive income. This is like getting interested in a checking account.
Go to
1. Federal
2. Wages & Income
3. Less Common Income
4. next to Miscellaneous Income, 1099-A, 1099-C
5. Select Other Reportable Income
6. Answer Yes on Any Other Taxable Income? Screen
7. Continue through the interview
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