Crypto mining is considered taxable income, and it's important to understand the tax obligations associated with it. The fair market value of the cryptocurrency on the day it's mined is treated as income, meaning you must report it on your tax return. In addition to income tax, if you mine as a business, you may also be subject to self-employment tax. However, you can deduct certain expenses, such as equipment, electricity, and internet costs, related to the mining process. Keeping detailed records of mining activities, including the value of mined crypto and any expenses incurred, is essential for accurate tax filing. Additionally, if you sell or exchange the mined cryptocurrency, you may be subject to capital gains tax based on its value at the time of sale.