If so, is there a minimum amount that you can make before you must claim it as income?
2007-07-27 14:27:34 · 10 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If you're recycling soda cans that you bought, you have a rock-solid argument that you aren't making income because you are recovering the money you paid for the cans. It's the same principle that when you loan someone $100, only the interest you get is income; the original $100 you get back is recovering your cost.
If your neighbors give you cans to recycle then it's a gift, which is not taxable income, though gift taxes would come into play if someone gives you several tons.
If you pick up cans off the street or make a business arrangement to haul off someone's recyclables and make a profit after hauling, then it's taxable income. The IRS will never admit that any income is too small to not count, but for practical purposes they aren't going to go after $10 of income. The minimum amount is going to vary a lot depending on the situation. If you round off amounts to whole dollars on your return then you can count 49 or 50 cents as zero dollars, depending on your rounding rules.
If your profit, after relavent expenses, is $400 or more then you are legally required to claim it as self-employment income and pay harsh self-employment taxes, in addition to regular income taxes. Whether or not you get a 1099 from the buyer doesn't matter--that's between the buyer and the IRS. From a legal point of view, it also doesn't matter that billions of dollars of this sort of income aren't reported.
2007-07-29 12:48:38 · answer #1 · answered by Houyhnhnm 6 · 2⤊ 0⤋
Technically yes, it is income earned from an activity. However, you can also deduct expenses against that income and you only pay taxes on the difference. Expenses would be cost of driving around to pick up, any processing/sorting costs, and record keeping type of work. However, my understanding is that scrap dealers you sell to pay in cash so there is no paper trail.
2007-07-27 14:38:16 · answer #2 · answered by jimmyp 3 · 1⤊ 1⤋
Yes you do. If you do it as a business for profit you need to file Schedule C and Schedule SE if you make over 400 dollars at it. If you just collect it and sell it when you get enough once in a while, then it should go on the 1040 under Other Income
2007-07-27 14:59:15 · answer #3 · answered by jeff410 7 · 3⤊ 0⤋
Are you an individual or a scrap metal company ? If your an individual , probably not unless your recycling an extreme amount of scrap .
2007-07-27 14:30:04 · answer #4 · answered by wesley_1971 4 · 0⤊ 0⤋
Can I pick up bottles as well and file Taxes if eligible
2017-03-08 19:30:57 · answer #5 · answered by sasha 1 · 0⤊ 0⤋
The question this begs is *where* did you get the scrap metal? If your cost basis is zero--or adjusted basis is zero, it's all income.
2016-03-16 00:47:15 · answer #6 · answered by ? 4 · 0⤊ 0⤋
technically, yes, but unless you are a company with a large amount you will not have to report it. The junk yard does not give out 1099 or W-2's to individuals for bringing in loads even if you bring them in every day. Don't lose sleep over this.
If you however are a company and the junkyard provides either of the aforementioned, then yes, you must.
2007-07-27 14:53:10 · answer #7 · answered by Anonymous · 0⤊ 3⤋
If it's income, it's taxable. If it's your ONLY income, you must file and pay taxes as soon as it exceeds $400.
2007-07-27 14:33:11 · answer #8 · answered by Bostonian In MO 7 · 0⤊ 1⤋
Do you get a 1099 for the sale of scrap metal. What can I say without getting myself in a lot of trouble.
2007-07-27 14:33:41 · answer #9 · answered by Anonymous · 0⤊ 3⤋
More than 400 dollors, you have to pay tax
2007-07-27 15:44:03 · answer #10 · answered by JAMES 4 · 1⤊ 1⤋