In the case of Patreon members, your earnings are reported to you on a copy of Form 1099-K, but usually only if you earn at least $20,000 through Patreon.
Does Patreon withhold any taxes from my payments? No – Patreon doesn't withhold anything (aside from our fees) from your funds earned on Patreon. You can see your gross earnings by visiting the Statements section of your Taxes dashboard.
For those unfamiliar with Patreon, it is driven by two types of people: creators and patrons (fans). According to Patreon's FAQ section on taxes, unless creators are legally recognized as 501(c)(3) charities, patrons cannot deduct their contributions under the charitable deduction.
Now, let's say that creator has reward tiers that are valued at $2, $5, $10, $25, and $100. If most patrons pledge $2-10, it's likely the average patron will pay
roughly $7.
How to get an estimate of how much you could make on Patreon.
| Size of following | 30,000 |
|---|
| Total monthly earnings | $315 – $1575 |
All things considered, the platform (and website) is awesome. It may not make you rich, but it actually has the potential to help you monetize and make quite a lot of money. As long as you continue to grow and nurture your audience-base, Patreon could be a viable option for you.
Frequency of PostingOur general advice is that if you're producing more than 4 pieces of content a month, go monthly. If you're pumping out more than 4 blog posts, videos, comics, or cute little creatures that you want to charge for — you should probably be a monthly creator.
Limited Liability Company (LLC)Your Patreon income does not require you to register as an LLC but there are many reasons you should consider it. When it comes to your taxes, an LLC provides you with more flexibility. You can file as a sole proprietorship or, if you qualify, you can file as an S Corporation.
Is a business license needed for Patreon? - Quora. Nope. You can start a patreon right now with your regular bank account, just sharing the weird things you do. I've become more sophisticated in how I process things since I began in 2014, but essentially, that's how I started on it and it's worked fine since.
The United States has income tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries may be eligible to be taxed at a reduced rate or exempt from U.S. income taxes on certain items of income they receive from sources within the United States.
A Form 1099-K includes the gross amount of all reportable payment transactions. You will receive a Form 1099-K from each payment settlement entity from which you received payments in settlement of reportable payment transactions.
For creators, Patreon is a way to get paid for creating the things you're already creating (webcomics, videos, songs, whatevs). Fans pay a few bucks per month OR per post you release, and then you get paid every month, or every time you release something new. Learn more about becoming a creator on Patreon HERE.
If I pledge to this creator is my pledge tax deductible? Your contribution, minus the value of any thank-you gifts you receive, is tax deductible to the full extent provided by law.
You can access your 1099-K from your PayPal account by January 31st annually. Only those customers that meet the 1099-K eligibility requirements will see the 1099-K available for download in their account.
All creators that submit tax info and who receive eligible payments, will receive a tax form (e.g. 1042-S, 1099-MISC) on or before March 15 of each year for the previous year's tax withholdings.
Is My Donation Tax-Deductible? Donations made to a personal GoFundMe fundraiser, rather than a charity fundraiser, are generally considered to be personal gifts and are not guaranteed to be tax-deductible. You will not be issued a tax receipt from our company.
Businesses send Form 1099-MISC, Miscellaneous Income, if you earn more than $600 in freelance work or contract labor during the year. In other words, Form 1099-MISC reports income from a particular business, regardless of the form of payment. Form 1099-K reports bank card income from all your customers and clients.
While logged into your Patreon account, click on the Income button from the navigation menu to the left, then click Taxes from the menu. Locate the tax year you need, then choose to View or Download the electronic 1099-K statement.
