Saving Those Receipts For Tax-Time:

Hello all ,
(New here, just on break right now)
Here's a tip that MIGHT help some others.
I'm married with two children, wife doesn't work.
My main income this year has been scrap metal.
I have NO tax liability up to about $28,000 income.

...SO I've been saving all my scrap rec'ts to report as income soon on taxes.
Due to "earned income credit" (which is up to $5000 back) , I should be pretty close to that at this point :D

Even if it's over the amount, I have mileage from my work truck (only used for work)
and gas expense too.

I asked the main scrap-yard I deal with if it would "mess them up" since over $600 pay out to anyone is supposed to be accompanied by a "1099" but he said, "go ahead, report it, but you'll OWE tax"...
NOPE, He just doesn't get it IMO,
Up to something like $28,000 I have NO tax is the thing,
and the more reported ,the MORE "earned income credit"...

Well somebody correct me if I'm wrong and thanks in advance for advice.
I did a tax course for Liberty Tax last year but didn't get hired (many more than usual showed up ...got my PTIN # tax-preparer with IRS though)...think I'm correct on this...
wife wants a car...I want an isuzu NPR deisel four speed ;)
:cool:

Sounds like you have a good idea on what to keep track of and how to file Schedule C and all that happy crap. You may want to register a trade name, DBA or whatever your state requires to make things legit. Also Turbo Tax Business is cheap and makes it easy...I used to do my own taxes but started using TT about 6-8 years ago.

I don think I am going to report it. But i still save my slips. But I also have a 40 hours job too

I cannot speak for every state, but for VA, whether you work under a business name or not, you are considered self employeed if you are earning money, working for yourself.

It is true, you are TAX EXEMPT if your GROSS income is UNDER a certain amount.

How ever, I don't play the IRS bs games. I file my taxes every year, REGARDLESS of how much money I make.

I scan each receipt at the end of the day, and then put them into different folders on an external hard drive. I do this every month to keep track on what money each month is spent on what.

Then, to make my H&R BLOCK accountant happy, I take ALL the receipts and combine them all for the year, into other folders. This way, she has to go into "Gas" and see all my gas receipts for the year...goes into "landfill" and sees all my tickets of money I spend unloading junk, etc.

Holy tax crap scrapman. :eek:

Try and say that three times !

In 1913 the first income tax forms where created. They gave an exemption of $3,000.00.......Fast forward to today, we still get an exemption of $3,000, but take a look at the worth of our $$$ (or lack of)....

1913=$3000.00
2011=68,000.00

I feel jipped....

I took a $150 microwave & sold it for the $7 Copper value, does that mean I made $143 loss?......

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Originally Posted by eesakiwi

I took a $150 microwave & sold it for the $7 Copper value, does that mean I made $143 loss?......

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It's your math, stick with it! I like this new math!

Now this is a good thread. One I hope we all can learn something from one another.
I was told by a tax "expert" that your credit card statements from the bank are considered an official tax document as far as showing fuel, repairs, tool purchases, etc..( I'm not yet sure if this is true as I haven't tried it yet, but I was considering using them this year).

Also the same with the cell phone and internet payments. As for the mileage driven I've been told to just write it down on a calendar daily and this also will pass as an official document. Again I'm not sure if this is true just what I've been told. If anyone knows for sure please feel free to comment on this.

As for the 1099 the scrap yard is supposed to report those earnings to the feds. and it is our own responsibility to pay our taxes (if owed) on the money. I for one am looking forward to the 1099 coming in this year. I think when it does a whole lot of the tweaker types will be surprised. And hopefully slow them down next year. But then again if they don't file on this money it will be up to the IRS to go after them. Are they really gonna take the time and expenses to go after each and every one of them? Doubt it.

I just keep a record of vehicle mileage on a word document - Jan 1 and Dec 31. That's if your vehicle is used ONLY for business. Otherwise, you can keep a daily log on a calendar or whatever. Yes, the IRS will "go after" the non-reporters of 1099 income. They simply send you a notice that you miscalculated (if they think it might have been a mistake on you part - like not including income reported on 1099). They will have amended your form and you owe ($$$$); plus penalties and interest. There's really not that much agent time or expense involved - it's all automated. This actually worked to my benefit last year. They recalculated my taxes and sent me several hundred dollars back as Overpaid Taxes. Now, if they suspect fraud, that's a whole separate discussion.

Mick, I don't doubt you one bit. I sure hope they go after some the "unethical" scrappers in my area. I'm sure it would be a boost to the more honest guys here.

If the yard issues 1099's and the scrappers don't claim it, all you'll have to do is sit back and wait. My brother learned the hard way.

I've never recieved a 1099 from my scrap yards here in Idaho. Wonder if it's just a matter of time before they have to start doing it.

Hey fellas, looking for that darn EIC calculator from last year but can't find it ATM.

It's crazy, last year I was toying with it, and the more I entered, the more I got back.
So I looked through my handyman work folder (I normally would've probably not reported) ...made darn certain I had all the phone numbers and dates to document incase "audit".

Got like $2500 back. For me it's not a "moral" issue because IF I'd made more and not reported those ,I'd be in trouble too.
Crazy.
Well you all voted for this clown in charge, and better I get this "EIC" (earned income credit) than some welfare crackhead anyway IMO...
Yeah, EIC is like a flag for audit since it's the highest pay-out for general stuff.
Before there was a "first-time home buyer credit" that went up to $8000 and the first year they didn't ask for home buy rec'ts ...so one girl at Liberty Tax had a visit from agents since she put through THREE for people who didn't even own houses...:eek:

Thanks a bunch for the replies. as for mileage, I think the odometer reading is all needed. other recpt's for gas or storage expense are good...
Also for self employment a business IS NOT needed (IE scrapper income)
was just looking HERE and I think $28,000 was from when I had ONE child, the figures are higher this year.
But the EIC is a curve which goes higher with more income, lower with more, and less with not much income.

more later...tired from racing to scrap before 1PM today...d*mn saturdays, nobody wants to work...same as stupid holidays ,etc. :):p
:cool:

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Originally Posted by skylinejackjr

Are they really gonna take the time and expenses to go after each and every one of them? Doubt it.

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Well, this is the government. Wouldn't surprise me if they piddle away 10 grand to go after 200 dollars.

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Originally Posted by DumbD

Well you all voted for this clown in charge,

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How do you know who voted for who?

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As for the mileage driven I've been told to just write it down on a calendar daily and this also will pass as an official document

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That's pretty much what truck driver do but they use a more official form. It's called a log book if you want to start using one. You can confuse the h*ll out of most people when looking at one filled out. When I hauled campers I would get back home from a trip and be finishing up my log book and it would "legally" say I was still in Ill. or Ky. 300 or 400 miles from home. lol

My yard doesnt issue 1099's and I know I've lost receipts, so i printed out the full year bank statements and highlighted all purchases for scrapping as a back up. I also have all my vehicle fix up receipts ready to go and my mileage since Im not sure which way Im claiming this year yet, its all new to me so......thats up in the air so far. I also had my insurance agent send me copies of what I paid in insurance just for MY truck since its the one used for scrapping.

Newattitude, Does your yard print off end of year statements if you ask them to? My yard I go to can go back a couple of years if I ask them to.

That's correct MDG, one or the other. Most cases the mileage deduction works best and if played right, will actually put money in your pocket, money you don't have to claim as income...the best kind.

Depends on which comes out more. If you had more breakdowns and repairs, then that way would be the way to go.

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Originally Posted by DumbD

Also for self employment a business IS NOT needed (IE scrapper income)

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No one said a business was needed for self employment. Self employment in a simple sense, is determined when you do any type of job for someone else in exchange for financial compensation. This IS money that YOU should report. Whether one does or not, is them, but as mentioned, ANY money I get, gets reported.

That's what the scedule C is for.

Yeah i havent got a 1099 from any yard here in idaho. If they dont send me one, do i need to report my earnings?

I aint trying to screw anybody, i'm just wondering.

Keep it legit Hoss. Call me about it sometime.

Big 10 4 their Joe. Like i said not trying or going to screw anyone. And thanks for those TV's by the way. Sorry i couldnt meet up with you, been crazy busy lately.

Not a problem.

Yeah I am wondering the same. No 1099 has come my way. All the more reason for a simple tax system.

They don't 1099 you but all the records are avalable to anyone with the right paperwork. Just a heads up!

Even if you don't get a 1099 from them it's still a good idea to claim that income, especially if you are writing off expenses for gathering the stuff you turned into them. Also, if they get audited at some point your name and payout amount will be on a list that gets turned into the IRS and depending on that amount you might get flagged for a closer look. Closer look = fresh batteries in IRS's flashlight and you bending over...even if they come up with nothing, it's not going to feel good.

Guys and girls...I can't speak for ALL scrap yards, but for mine, they are classified in a way (can't remember which way), to where they don't do 1099's on us. It is OUR responsibility for filing or not to file our taxes.

Like I said, I have a wife and 2 small kids to think about, so any monies I get from work related situations gets reported, as well as all gas receipts, equipment/tool receipts, and anything else that I need to report or write off.

Last year, I simply told my H&R Block rep how much money I made, how many miles I drove, what items I wrote off, etc. She entered it all, informed me of how much I paid into social security for retirement (over $700) more than I ever made working for someone else (minus myself for other companies), how much we were getting back, etc.

They were also awesome enough, to take out our filing fees ( a couple hundred), and then told us how much to come back and get in a week and a half, almost $2,000.

If I have the options of filing my taxes, and getting any amount back, or breaking even, versus possibly dealing with the IRS and having them in MY BUSINESS, I will always choose to file taxes.

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Originally Posted by Kris Kringle

If I am reading this correctly you don't file a 1099 on yourself.

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"Form 1099-MISC or Form W-2

You cannot designate a worker, including yourself, as an employee or independent contractor solely by the issuance of Form W-2 or Form 1099-MISC. It does not matter whether the person works full time or part time. You use Form 1099-MISC, Miscellaneous Income (PDF) to report payments to others who are not your employees. You use Form W-2 to report wages, car allowance, and other compensation for employees."

http://www.irs.gov/businesses/small/...101038,00.html

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Not sure what the technical term for the 1099 form is called, but I am confident that is it, since it comes from the IRS.

From personal experience, all I can say is that, it is a 1099 form that a lot of businesses use, if you do not work DIRECTLY for them, but as a sub contractor of any kind.

1099's actually come from the person that has paid you money for whatever reason, and then they file a copy of all the 1099's they issued with the IRS.

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Originally Posted by freonjoe

Newattitude, Does your yard print off end of year statements if you ask them to? My yard I go to can go back a couple of years if I ask them to.

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No, but he can go back and check the individual months for receipts I may have lost and give me the ticket numbers, etc. Lol, I never thought to save all my tickets until my brother suggested I tack them to the garage wall for fun which I started to do in April.
every time I go up there and think he is slow enough to go through with me tons of ppl show up and its ''come back next week.''

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Originally Posted by Kris Kringle

That is what I am saying Basically You turn scrap into the Scrap yard for payment that Don't automatically make you a sub contractor to the Scrap yard . {At least I wouldn't think it would} If that would be the case anytime you sold something you would be a Sub to whoever you sold something to.

and I am not arguing here just I admit when I don't know something.

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It is just the way the law classifieds it. It is not the same, as if you sold a car to someone, that they are going to issue a 1099 to you. However, you would report the money you did make from selling it to a company, individual, etc.

A lot of company's when they hire you, will tell you that you will receive a 1099 at the end of the year.

Sometimes, when you see craigslist ads for jobs, they will have the statements in there that you will be a sub and required to do a 1099 with them.

Best way to do it, is contact your local tax reps, and ask them.

I just know what I do for me, my businesses, and my family. I also know of people who don't file at all. Just depends.

I, Like you MDG, don't necessarily consider myself a sub-contractor of the yards I go to. But if I were on the other side of the scale and had categorize the money I paid out to labor to get, process and ship scrap metal into one of two categories, the first would be employees I have full control of (hours, job description, set pay) and they would get a W-2 at the end of the year. The other category would be the randoms that I use through out the coarse of the year that offer a service my regular employees don't have the time to do, I don't have near the control over them as I do my employees other then to not use their product or service if I don't like it...those folks I would consider sub-contractors and issue them a 1099 at the end of the year.

Using the term "subcontractor" in this context is only confusing the issue and is irrelevant. For most of us, there is no contract involved; so no subcontract. We merely sell whatever we have whenever we want to the scrap yard. If we sell more than $600 to any one yard, that yard COULD issue a 1099 MISC. I get a 1099 from Exide every year for the batteries I sell them, but I don't get a 1099 from the scrap yard although I sell them more than $600 in metal. Regardless, I'm still required to report the income from ALL sources, whether they issue a 1099 or not. And there is no contract with any of them.

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Originally Posted by Mick

Using the term "subcontractor" in this context is only confusing the issue and is irrelevant. For most of us, there is no contract involved; so no subcontract. We merely sell whatever we have whenever we want to the scrap yard. If we sell more than $600 to any one yard, that yard COULD issue a 1099 MISC. I get a 1099 from Exide every year for the batteries I sell them, but I don't get a 1099 from the scrap yard although I sell them more than $600 in metal. Regardless, I'm still required to report the income from ALL sources, whether they issue a 1099 or not. And there is no contract with any of them.

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Without going into any debates, I will simply say well said. The last part, is what I have been trying to get through.