topic 1099-K is for Payments Processed by a third-party entity.... in Get your taxes done using TurboTax

How to file Patreon Income without physical 1099K

bradnewsom — Sat, 01 Jun 2019 00:35:07 GMT

I didn't see any absolute answer to this. I received less than $20k and will NOT receive a 1099k. Therefore, I have no idea where or how to enter my Patreon Income. Do I need to pay for Home & Business? I don't make all that much money as it is.

The reason you aren't finding an "absolute answer" to thi...

ToddL — Sat, 01 Jun 2019 00:35:09 GMT

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

1099-K is for Payments Processed by a third-party entity....

qbteachmt — Sat, 01 Jun 2019 00:35:09 GMT

1099-K is for Payments Processed by a third-party entity. So, Patreon is acting like Pay Pal or Amazon, which means Not Your Bank. It has nothing to do with your Tax year. 1099-Misc and/or 1099-K are "informational." As a self-employed artist, even if you Never get those forms, you still do all your financial tracking and reporting for tax purposes.

Example: Selling $500,000 total of art pieces to individuals that pay you directly means there is no 1099 reporting. You still track everything and report for tax purposes.