As far as I'm aware, Paypal DOES send information to the IRS, so if people are getting like $20,000 over Paypal they will get a bill from Uncle Sam. xD

Good to know, lol.

It's pretty much universal: if you're making money, the government wants their cut.

Death and taxes!

The one patreon I contribute to ATM, I know the artist pays her taxes (quarterly, at that). In fact her talking about dealing with her taxes often reminds me I need to help another friend get set up to handle her taxes...

Better do it sooner rather than later.

wow, interesting point. I am now wondering that myself.

I'm pretty sure you've made a golden prediction here. But I wonder how many Patreon members are going to make enough through it for their income to actually matter. The IRS wants a piece of every transaction, it's true, but they're not the most on-top-of-things bunch when you get right down to it. They're only going to really bother if it looks like they're going to lose some significant amount, I would think.

But still, I so think you've nailed it here.

Misc Income Form 1099 away!

It's why I stopped using Patreon after $5. I learned about that and pretty much said "Fuck no."

LOL You're going to be very broke if you avoid taxes that badly.

This - they don't require you to file a form under certain amounts. I don't recall the exact amount, is is definitely a few thousand, so if your patreon doesn't bring in that much it is unlikely you'll need to file specifically for Patreon. Also, if you do need to file, then patreon should have the tax forms for you with all the amounts and information to enter (in theory). In general, it is always a good idea to set aside some money for taxes, especially if you freelance. :/

That I do get, though it's probably safer to start that paragraph with "If your patreon + regular income don't add up to..." I can imagine people skipping the second part of what you said, lol.

Very good point to bring up :)

Which is why it's likely best to sponsor folks not living within the us on patreon or paypal. Or better yet, just send them a check or money order.

Or just... tell them to pay their taxes. Like people do.

...or pursue developing marketable skills that are in greater demand than art, because let's be honest, while artistic skills are good things to have it's basically a passion career, not a profitable one.

I'm almost certain Patreon may get a cut of the donations if it's anything like kickstarter and such, but if you earn a certain amount, you MAY get a visit from the IRS.

I'm not 100% certain myself, I'm still looking into getting my own Patreon started and seeing what I should watch out for

yes and yes, I've noticed alot of people on here are bad about mangaging their money

Hm, that's a good question. Artists get income from their regular work, folks should be careful that their patreon and regular work does not exceed the required amount to be taxed.

Here's the interesting part. Depending on your country and how you built your patreon technically for some people the funds can fall under "generous donation" or gifts or under the same classification as street performer or even panhandling.

So even just figuring out how to classify your funds can be a headache and can mean huge savings if done right and by the law.

That's some beautiful imagery right there.

Here's the interesting part. Depending on your country and how you built your patreon technically for some people the funds can fall under "generous donation" or gifts or under the same classification as street performer or even panhandling.

So even just figuring out how to classify your funds can be a headache and can mean huge savings if done right and by the law.

Yeah! I was going to mention this but you beat me to it. gj <3

Here's the interesting part. Depending on your country and how you built your patreon technically for some people the funds can fall under "generous donation" or gifts or under the same classification as street performer or even panhandling.

So even just figuring out how to classify your funds can be a headache and can mean huge savings if done right and by the law.

This is actually something I've pointed out to several people, so it's good to see the message spreading. ^.^

Yes, Patreon reports to the US gov. Money laundering laws and tax evasion and all. That's why it asks for your SSN before it will pay you.

If you make enough money before Patreon to have income tax taken out and not get 100% of it back, then the place you will have the biggest problem is if you make about $3500 on Patreon. At that point, you should have filed estimated taxes during the year and the IRS dings for underpayment during the year. Otherwise, anything $200 or more will be taxable. Pro Tip: Talk to your accountant if your Patreon income looks to be $3000 or more for the year and you have a normal job too.

I report all of the income I make on each site/tool that handles with money (Square.com / Paypal / Patreon) to the I.R.S., and I pay my taxes quarterly.

Quarterly, ugh...

I guess it's less of a sting if you do that. There are many things I hate doing more than once a year though.

It's a lot better for me to do it quarterly, than to pay like...4-5k at one time in a year. x__x

Rather shocked that some people are trying to avoid paying taxes, unless I'm reading these comments wrong?

Goodness help FA if they ever open up a Patreon . . .