There are no fees to engage in hobby mining but there can be costs associated with mining pools. Moreover, bitcoin accrued can be subject to capital gains tax (although be sure to check with local government guidelines as they vary in each country). However, miners may still be liable to pay income tax based on their fair market value when received. In the United States, the IRS regards hobby mining profits as ordinary income, meaning that the miner will be taxed at the same rate as their other sources of income. However, none of the hobby mining expenses are eligible for tax deductions.