Did you add the 1099-K from Kickstarter to your income? This is taxable income. Then did you have other income in addition to that income? Did you enter this all under your business?
Yes, you can then AFTER including the $6,701 in your income, deduct the full cost of $7,391 and the $3,000 in advertising and consulting expenses.
As to why you still have taxable income, it would seem that you had entered maybe $6,000 in other income or you entered the 1099-K twice. If you entered the 1099-K twice, you will need to delete the one entry.
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