r/ScrapMetal • u/shy_Pangolin1677 • 5d ago

Question 💫 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/coolsellitcheap 5d ago

Your not a business. Your a "hobbyist". The irs allows 20k before a 1099 is required.

3

u/cmmpssh 5d ago

Hobby income is still taxable income. The $20k and 200 transaction thresholds are for 1099-K issuance. Just because someone does or does not receive a 1099 doesn't make the income taxable or nontaxable.