If I sell scrap metal to the scrap yard how would I claim my income

Forum|Forum|1 year ago
January 10, 2025
2 replies
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I only haul off stuff to sell to the scrap yard

Best answer by Opus 17

This could be a hobby or business, depending on your motive and how you carry out your activities. Here are a couple of tip sheets.

https://www.irs.gov/newsroom/hobby-or-business-heres-what-to-know-about-that-side-hustle

https://www.irs.gov/newsroom/know-the-difference-between-a-hobby-and-a-business

If it is a hobby, you report the income as miscellaneous other income. You can't deduct any expenses. You pay income tax on the income.

If it is a business, you report it as self-employment income on schedule C. You report your gross income, and you can deduct business expenses if you have adequate records (that might be mileage on a truck used to collect and haul the scrap to the yard, for example). You need reliable records of your expenses in sufficient detail to prove, if audited, that they were business expenses. You pay income tax and self-employment tax on your net profit (gross income minus expenses). If you pay to buy scrap from people, that can be one of your expenses, but normally I would expect you don't have any actual costs for your materials, just maybe vehicle expenses.

xmasbaby0

Employee

You have self-employment income. As far as the IRS is concerned, you have your own business. You are required to file a tax return if you made even $400, and you will pay self-employment tax for Social Security and Medicare.

SELF EMPLOYMENT INCOME/“side jobs”

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare, you will need to use online Premium software or any version of the desktop software download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

If you live in a state with a state income tax, you might need to make estimated payments to your state.

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

https://ttlc.intuit.com/community/business-taxes/discussion/self-employed-don-t-miss-these-tax-moves/00/3400413

To enter your self-employment income not reported on a 1099-MISC or 1099NEC:

Type “Schedule C” in the Search box
Select the “Jump to” link.
Answer the general questions about your business (or select Edit at the work summary screen).
At the Let’s get income for… screen, select Additional Income.
When in your account, select the Take Me to My Return button on the main screen.

If you did make $600 or more, contact the company or individual you worked for.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Opus 17Answer

Employee

This could be a hobby or business, depending on your motive and how you carry out your activities. Here are a couple of tip sheets.

https://www.irs.gov/newsroom/hobby-or-business-heres-what-to-know-about-that-side-hustle

https://www.irs.gov/newsroom/know-the-difference-between-a-hobby-and-a-business

If it is a hobby, you report the income as miscellaneous other income. You can't deduct any expenses. You pay income tax on the income.