ToddL
New Member

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The reason you aren't finding an "absolute answer" to this question is because there are many variables involved and the IRS has not issued any definitive guidance on the subject of "crowdfunding" (yet).

If you are offering an incentive (art, music, software, photos, etc.) in return for a donation, then those donations are likely to be taxable income. This is called rewards-based crowdfunding. How you report this will depend on whether it is a hobby activity or a business activity on your part.

If you are simply asking for donations to support your artistic efforts, then they are likely to be considered nontaxable gifts (not reportable).

For a more detailed discussion on this issue, see: Crowdfunding and income taxes