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If I don't have anything in a crypto wallet, I haven't bought or sold any crypto, but mined it, and have no documentation of any kind with info needed, do I pay tax?

I'm completely new to all of this. I have mined crypto with a program, the last I knew the crypto didn't even price yet, I just received a message about some KYC thing  last week, eventually completed that and I'm not sure what to do. I've been mining this crypto for 3 years. I have no information, no .svc something. How do I pay tax on it, if I even do?  Not currently employed. Looked all over the internet trying to find an answer to this. Please help!!
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2 Replies
TomK2023
Expert Alumni

If I don't have anything in a crypto wallet, I haven't bought or sold any crypto, but mined it, and have no documentation of any kind with info needed, do I pay tax?

If you're self-employed or running a mining business, you'll report your mining income on Form Schedule C (1040). However, it doesn't sound like you have received any crypto documentation or tokens, rewards, etc.

 

Have you received any tax-related forms for your cryptocurrency mining or other efforts (e.g., 1099-MISC or 1099-NEC forms)?

 

Connect with a specialized crypto tax expert as often as you need for guidance on your investment and crypto taxes. (Included only with Assisted Premium and Live Full Service).

 

Please read this TurboTax article for more information: Your Crypto Tax Guide

 

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If I don't have anything in a crypto wallet, I haven't bought or sold any crypto, but mined it, and have no documentation of any kind with info needed, do I pay tax?

Hello, thank you for responding. It’s not a mining business, it was just something I started to pass the time. No, I have zero documents of any kind whatsoever. 

 

I had just received a message from one of the people in my circle just over a week ago about, whatever KYC is and that I needed to complete it. That was the first time hearing about it. So I went ahead and did so, but I’m in a queue waiting for it to get processed. Some people are saying people having been waiting for months to get verified and completed. So if people who have completed before me have been waiting that long, god knows when I will be.

 

Also it’s on a sheer whim that I decided to check the same day as messaging you on the status of my KYC and it actually said it is complete. There is a balance that was sent to the wallet, not the whole balance, some still needs to be verified. Also the available balance is .01 and the rest is pending until 3/21/2024 and is locked until 01/22/2027. What does that mean and what do I do, if anything? Thank you

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