Crowd funding websites and having to pay taxes?

R

ReelFilmGeek

Well-known member
Okay so I know you have to pay taxes through the money you get from indiego, kickstater, ect but I was wondering how I would actually file it. You see I don't know much about taxes at all (only a high school senior who recently got a part time job so little experience in the tax field.) but I believe I would file it under an income tax but don't I also deduct some of the money as expenses? Any experience anyone has had with this stuff that they would like to share would be great!

Thanks guys.
 
Do you have a local community college that has adult business classes that you can audit? Tax preperation is very hard to navigate on your own if you are just staring out. I suggest going to local H&R Block and ask for some advice and direction. If you get to itemizing it can be rather specific to the movie industry depending upon where you are. This is not something you can pick up on a general forum. I do our family and wife's business myself and that gets complicated when you itemize. I also do my kids performer taxes which uses different tax codes......
 
As far as I know money that you raise by fundraising, or gifts is excluded from taxes (but I'm not so sure if the amount is over 10000)
 
No they recently brought crowdfunding under an investment tax umbrella. There was a thread about it not so long ago. As I recall the taxes are levied against the investors, not the production. The production is already taxed under existing schedules. Best to pay for a consultation with an accountant or hit up the tax department or indie gogo website for the actual documentation. It should be included in every page you click "I agree" to (without reading of course) because they have to disclose it.
 
My understanding is that Kickstarter ( or Amazon) will send you a 1099 for the funds raised.... you treat it just like freelance income because it will be reported that way to the IRS.
It costs a bit to have a CPA do your taxes, but it's well worth having a professional do them for you as the laws change every year. (and the cost of the CPA is deductable!)
 
Last edited:
ZazaCast said:
My understanding is that Kickstarter ( or Amazon) will send you a 1099 for the funds raised.... you treat it just like freelance income because it will be reported that way to the IRS.
It costs a bit to have a CPA do your taxes, but it's well worth having a professional do them for you as the laws change every year. (and the cost of the CPA is deductable!)
Click to expand...

^ This is correct.
 
This is what I was told too. Unless your company is 501(c), aka has charitable status, it counts as income.

But hey I live in Canada, which is a whole other situation....
 
You must log in or register to reply here.
Back
Top