How to Report Helium Mining Income on Taxes

Complete step-by-step instructions for reporting your Helium HNT, IOT, and MOBILE mining rewards on your US tax return. Includes IRS form guidance and common mistakes to avoid.

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Quick Summary: Helium Tax Reporting

Mining Rewards: Taxed as ordinary income when received (Schedule 1 or C)
Token Sales: Capital gains/losses reported on Form 8949 + Schedule D
Hotspot Costs: Deductible via Section 179 (business miners only)

6 Steps to Report Helium Mining Income

Gather Your Helium Wallet Data

Export all HNT, IOT, and MOBILE rewards from your Helium wallet. You need dates, amounts, and USD values at time of receipt.

Tips:

Use DePIN Tax to auto-import from Solana wallet
Export to CSV for manual tracking
Include all wallets used in the tax year

Calculate Fair Market Value at Receipt

For each reward, determine the USD value when you received it. This is your taxable income amount.

Tips:

Use historical price data from CoinGecko or CMC
DePIN Tax auto-calculates FMV for each transaction
Keep records of price sources for IRS

Determine Hobby vs Business

Decide if your mining is hobby income (Schedule 1) or business income (Schedule C). Most active miners should use Schedule C.

Tips:

Business = regular activity with profit motive
Schedule C allows expense deductions
Schedule C triggers 15.3% self-employment tax

Report Mining Income

Enter total mining income on the appropriate form. This is the sum of all FMV at receipt throughout the year.

Tips:

Schedule 1, Line 8z for hobby income
Schedule C for business income
Include ALL tokens: HNT, IOT, MOBILE

Deduct Business Expenses (Schedule C Only)

If filing Schedule C, deduct hotspot costs, electricity, internet, and other business expenses.

Tips:

Section 179: Deduct full hotspot cost in year 1
Track electricity for hotspots separately
Deduct business portion of internet

Report Token Sales (If Any)

If you sold, traded, or spent any HNT/IOT/MOBILE, report each transaction on Form 8949.

Tips:

Cost basis = FMV when you received the tokens
Use FIFO, LIFO, or HIFO method consistently
Summary goes on Schedule D

IRS Forms Quick Reference

For Mining Income

Schedule 1, Line 8z: Hobby mining income
Schedule C: Business mining income
Schedule SE: Self-employment tax (with Schedule C)

For Token Sales

Form 8949: Each crypto sale/trade
Schedule D: Capital gains summary
Form 4562: Depreciation (if applicable)

Common Mistake: Using Schedule E

Schedule E is for rental property income, not crypto mining. Many Helium miners incorrectly use Schedule E. Use Schedule 1 or Schedule C instead to avoid IRS issues.

Frequently Asked Questions

Do I have to report Helium mining income if I did not sell any tokens?

Yes. The IRS considers mining rewards as taxable income when received, regardless of whether you sell. You must report the fair market value of HNT/IOT/MOBILE as income even if you HODL.

What is the difference between Schedule 1 and Schedule C for Helium income?

Schedule 1 (Line 8z) is for hobby income - simple to file but no deductions allowed. Schedule C is for business income - allows deductions but triggers 15.3% self-employment tax on net profit.

Can I deduct my Helium hotspot purchase?

Yes, if you file Schedule C (business). Use Section 179 to deduct the full cost immediately, or depreciate over 5 years. Hobby miners (Schedule 1) cannot deduct equipment.

How do I handle multiple tokens (HNT, IOT, MOBILE)?

Each token is treated the same way: report FMV at receipt as income, and calculate capital gains separately when sold. Track each token type separately for accurate reporting.

Let DePIN Tax Do the Work

Connect your Solana wallet and DePIN Tax automatically imports all Helium rewards, calculates FMV, and generates IRS-ready tax reports.

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