Crypto Mining or Earning Crypto? Here’s the Tax Mistake to Avoid



If you’re generating or earning crypto—mining, gaming, staking rewards, or producing digital assets—you’re likely paying self-employment tax on top of federal and state income tax. And because it’s treated as ordinary income, you don’t get capital gains treatment either.

This is why crypto creators should strongly consider using an S corporation. Routing that income through an S corp can significantly reduce the 15.3% self-employment tax exposure while still treating the activity as a real business. For miners, gamers, and creators, this structure can save thousands each year.

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