If you're not incorporated, business expenses are only deductible if they exceed 2% of AGI[0, p2], so for a hobbyist miner it is quite plausible that they can't write it off.
If you're just some average person, no, you aren't writing off the expenses. You should just add it to Schedule 1 line 8z "Other Income" and write "crypto mining" as what it is from. If you're just some average person, the actual tax on that money is going to be something like 10-15%.
You can save a lot of time and effort: If it's not profitable when you pay your taxes, it isn't profitable. It's a hobby.
Quick note since it wasn't totally clear from the sibling comments that this is totally wrong. The cited document is describing a completely different kind of "deduction" for a completely different reason and has nothing at all to do with the ability to "deduct" business costs from profits. The underlying principle is that only profits from business activity are taxable, not gross income.
In case anyone is wondering, the cited document discusses _unreimbursed_ _employee_ expenses. This means something like: you used your guest room as an office to perform remote work for your employer, and they didn't give you any rent for that space. In some times past you could actually pay less tax by declaring that you had rented your guest room to your employer but they hadn't paid you the rent, and so that's now a loss to you upon which you don't pay tax. This document says "nope, you can't do that any more".
However, my understanding is that all of this might be best handled as a Sole Proprietorship and filed using Schedule C - Profit and Loss from a Business.
Not tax advice, but I'm pretty sure you can just file it under a Schedule C as business income, and then you definitely can deduct the expenses from the business income with no 2% minimum.
If you're just some average person, no, you aren't writing off the expenses. You should just add it to Schedule 1 line 8z "Other Income" and write "crypto mining" as what it is from. If you're just some average person, the actual tax on that money is going to be something like 10-15%.
You can save a lot of time and effort: If it's not profitable when you pay your taxes, it isn't profitable. It's a hobby.