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Get your taxes done using TurboTax
@nikkizio wrote:
Hi! Just want some clarification because I'm in the same situation.
I've just set up a Ko-Fi for people to support my writing. I'm not offering commissions and anyone who donates isn't getting anything in return. This means it's classified as a gift, correct? And I won't need to claim it unless I give them something back in return? Thank you!
If you are providing a service (writing), then anything of value you receive for that service is taxable self-employment income, even if you don't provide a specific extra benefit to donors or members. Basically, the only reason people would send you money is because they like your writing and would like to read more of your content, and don't want you to curtail your writing to take some other kind of full-time job, right? So that's self-employment income as a writer. The payers are paying for content you create, even if they are paying "in advance" so to speak, and even if there is no specific promise of certain content at certain times.
(Or put another way, you asked people to support your writing. If you took the money and never wrote any new content, the payers would feel cheated, even if you did not make a specific promise, and they would stop supporting you. So it's writing income.)