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Reporting Earnings From Metal Detecting to the IRS

All earnings, including valuables you find with your metal detector, must be reported to the Internal Revenue Service (IRS). The IRS will tax the gain from the findings, in much the same way prize winnings are taxed. If a person wins a prize, he must report the fair value of the prize as income. The IRS then taxes the income as if the person earned the money as wages during the year.

Instructions

    • 1

      Find the fair market value of the goods found while metal detecting. If you sold the goods, this would be the sales price. If you've kept the item, the fair market value is the price at which you could sell the goods. You can determine an item's fair value by checking websites such as eBay.

    • 2

      Write "findings" as the type of income on Form 1040, Line 21.

    • 3

      Write the fair market value of the goods on Form 1040, Line 21.

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