MaryK4
Expert Alumni

Get your taxes done using TurboTax

Kickstarter funds are considered taxable income. but expenses related to the expense are deductible as self-employment income (Schedule C).  The big IRS issue is not the INCOME taxes but Self-Employment Tax (Social Security and Medicare) is due on net self-employment income over $400- but because the GROSS is more, to show the net business income, you would have to file the Schedule C to show expenses.  

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