Kickstarter tax help/‘information needed from my dispals!

[mommycrawford]

My daughter and two friends reached out to friends and family to fund the making of a short film….It raised its goal of 10,000, and they spent about 18,000:

Paying actors, renting location to shoot, renting equipment, hiring tech, editing, etc..

She did not get a 1099 of any kind, and googling has given no clear information on how this goes on her taxes.

Any experience or knowledge would be greatly appreciated!!!

Thank you community!!!

 

[georgina]

My daughter and two friends reached out to friends and family to fund the making of a short film….It raised its goal of 10,000, and they spent about 18,000:

Paying actors, renting location to shoot, renting equipment, hiring tech, editing, etc..

She did not get a 1099 of any kind, and googling has given no clear information on how this goes on her taxes.

Any experience or knowledge would be greatly appreciated!!!

Thank you community!!!View attachment 846099

Kickstarter says this - Funds raised on Kickstarter are generally subject to taxes. How much you owe can vary based on a number of factors, including the deduction of project-related expenses. We highly recommend talking to an accountant or tax advisor.Feb 17, 2024

https://help.kickstarter.com/hc/en-... Kickstarter are,an accountant or tax advisor.

Perhaps they should talk to an accountant or tax advisor as recommended.

 

[gottalovepluto]

She needs proper tax preparer help stat if this is about filing 2023 taxes. If she can't find help in time she should file extensions. She very well might have a business which could be complicated depending on how the other people fit into this.

IRS- hobby v. business (basically did they intend to make money?)
IRS- things to know about crowdfunding article 1 article 2

The fact she didn't receive a 1099 has no bearing on this. If the income you receive is considered taxable you are supposed to report it even if you do not receive a 1099.

 

[mommycrawford]

She needs proper tax preparer help stat if this is about filing 2023 taxes. If she can't find help in time she should file extensions. She very well might have a business which could be complicated depending on how the other people fit into this.

IRS- hobby v. business (basically did they intend to make money?)
IRS- things to know about crowdfunding article 1 article 2

The fact she didn't receive a 1099 has no bearing on this. If the income you receive is considered taxable you are supposed to report it even if you do not receive a 1099.

Thank you for this!…The intention was not to make money. She is an actor, and the actors strike made it so she had a lot of free time, but she still wanted to create; it was more of an art project, and way to create content for her reel. If you have any information on where exactly it would go on her taxes, and that would be very much appreciated!

 

[mommycrawford]

She needs proper tax preparer help stat if this is about filing 2023 taxes. If she can't find help in time she should file extensions. She very well might have a business which could be complicated depending on how the other people fit into this.

IRS- hobby v. business (basically did they intend to make money?)
IRS- things to know about crowdfunding article 1 article 2

The fact she didn't receive a 1099 has no bearing on this. If the income you receive is considered taxable you are supposed to report it even if you do not receive a 1099.

Thank you! I had googled and things were not very clear to me, which is why I came to this forum… That people are so knowledgeable here, and so helpful!

 

[gottalovepluto]

Thank you for this!…The intention was not to make money. She is an actor, and the actors strike made it so she had a lot of free time, but she still wanted to create; it was more of an art project, and Wade to create content for her reel. If you have any information on where exactly it would go on her taxes, and that would be very much appreciated!

I'm sorry, I do not have any information on that and still strongly feel she needs to pay up and talk to a professional tax advisor to protect herself here.

 

[mommycrawford]

I'm sorry, I do not have any information on that and still strongly feel she needs to pay up and talk to a professional tax advisor to protect herself here.

Thanks very much!…My Dad has always filled out our taxes, but had no idea about this. Being unfamiliar with schedules and such, I imagined someone one this forum might have had experience…,I have a tax person helping now. Thanks everyone for sharing what you knew!

 

[Lewisc]

Schedule C is used for unincorporated business income, including expenses. It sounds like expenses are likely to exceed income. An accountant will help with the form. The accountant will help with possibly using the loss to offset other income