1099k and Kickstarter Funds

[DrewSThomas]

I ran a Kickstarter last year that fully funded and I received $6,701. I then took that money and put it directly into the production of the game I made which ultimately cost $7,391. If I take that money and put it directly into the production of goods, isnt that an expense I can write off? Where would I put that?

I entered in all the advertising and the consultant expenses that came to be about $3,000, but it is saying that I still have taxable income of about $3,600.

Any help would be appreciated.

[Vanessa A]

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.