Hal_Al
Level 15

Get your taxes done using TurboTax

Kickstarter income is generally not earned income, so the $12,200 threshold does not apply.  Kickstarter money can be a variety of items for tax purposes, with a mishmash of opinions on how it should be reported.  If it is business income, the $400 threshold applies.  If it is "other income", such as hobby income, then there's a $1100 filing threshold, for dependents.

 

I'm of the opinion that this money is gifts, since it was only a college project. He does not need to report it at all. The only taxable income would any money left over, after expenses.

 

Even if it is business income,  he will owe no tax, as long as all the money was spent (deductible expenses) on the project.  But, he will have to file. Furthermore, even if it is business income,  and he shows a "profit",  there  is a "one time gig" exception on the self employment tax, but not income tax.  But the income is low enough no income tax would be due anyway.