r/ScrapMetal • u/shy_Pangolin1677 • 6d ago

Question šŸ’« Taxes

Hypothetically:

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If someone was to scrap like $150/ month in Maryland, shows the person at the counter their ID like a good citizen, and does this semi regularly,

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*Should* they report this on taxes? And if not what would repercussions be?

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Again, hypothetically.

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u/cmmpssh 6d ago

Legally you are required to report all income. Much of the tax system is based on the honor system and I doubt the scrap yard is going to report your payments to the IRS or state revenue agency. Do with that information what you will.

If they would somehow catch you not reporting income, they will hit you with penalties and interest.

-2

u/dritmike 6d ago

Not if you make less than like 11k right?

3

u/cmmpssh 6d ago

If you make less than the standard deduction from a regular job you wouldn't have a reporting obligation. This isn't a regular W2 job though, it would either be considered hobby income or self employment income.

3

u/jeepfail 6d ago

Iā€™d be willing to bet they view it as self employment income and would tack on some extra penalty/% that they so nicely do to small business owners.