Is the money I earned from Patreon “taxable income?”
In many jurisdictions, the money you receive from your patrons is considered taxable income.
There are many types of taxpayers, from corporations to individuals, and how each is taxed is unfortunately beyond the scope of this document. That said, the IRS considers gross income to mean “all income from whatever source derived,” which can include pledges of support made to you from your Patrons. From there, things get interesting. Most, if not all creators will have expenses that offset some or all of that income. Further, if you are a legally recognised not-for-profit (for example, a USA 501(C)(3) charity), then you might not owe tax on your Patreon income. A local tax advisor would know for sure, so we encourage you to reach out to one for additional information.
Learn more about being a non-profit creator here: Can non-profits use 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. We are obligated to add, collect, and remit sales tax and VAT on top of some pledge, but those funds are not calculated anywhere as ‘earnings’. You can see your gross earnings by visiting the Statements section of your Taxes dashboard.
How does Patreon calculate my gross earnings?
To calculate your gross earnings, we take the total amount of processed payments from your patrons before refunds and deduct fees (platform, payment, currency conversion, and processing fees).
Your gross earnings for a given year will be available in the Statement section of your Taxes dashboard.
What is the W-9 Form?
The W-9 form is used in a wide range of payment situations. Most commonly, taxpayers fill out a W-9 when working as a freelancer or independent contractor rather than an employee. The purpose of collecting the W-9 form is to record your tax identification number, along with your name and address, so that Patreon can notify the IRS of the amount earned in a calendar year.
Patreon requires creators who meet certain earnings thresholds to complete the W-9 form to generate a 1099-K – please review the section below to find out if you meet those earnings thresholds.
Do I need to submit a W-9?
How do I submit a W-9 form?
- Log in to your Patreon account
- Once logged into your account, click the gear icon in the left menu to open your Settings
- Click into the Payouts and Taxes settings from the menu bar
- Scroll to the “Tax settings” section at the bottom of the page
- Click on the “Fill out W-9 form” button to access an electronic W-9 form
What is Form 1099-K?
Will I receive a Form 1099-K?
What is a TIN?
Is my personal information secure on Patreon?
When submitting your W-9, Patreon will check the information against the IRS database to ensure accuracy.
Real-Time TIN Verification makes it possible to proactively validate your information and check individual data against the IRS TIN matching database, Office of Foreign Assets Control (OFAC) list, and Death Master File (DMF) as you submit your form. (This is done in real-time, and thus we will let you know if there is a mismatch or problem with the submission.)
All information provided is secure. We encrypt your forms with 2048bit RSA encryption. Each time you want to update your W-9, you will have to submit an entirely new form, as we do not surface previous information considered sensitive.
Does Patreon handle VAT, QST, GST, or Sales Tax?
Maybe! It depends on the jurisdiction. If we do, there's nothing you need to do or worry about. We'll calculate and add the tax due on top of the patron's pledge, collect it and remit it to the taxing authority of the patron directly. Find a list of places where this is the case, here: Where is Patreon collecting tax, and what are the tax rates?
I am a US citizen living outside of the US which tax form should I fill out?
- Based on the instructions on the W-8BEN if you are a US citizen you should fill out a W-9 regardless of where you are currently living. Your income from Patreon may be subject to 1099 reporting.
- Please review our help guide to find out if you'll receive a 1099-K: will I receive a 1099-K form?
- Please refer to the W-8BEN form for more instructions, here: instructions for Form W-8BEN. Consult with a tax professional to determine your tax responsibilities.
What is a USA tax identification number?
|SSN||For USA creators who are individuals/persons — your Social Security Number|
|EIN||Employer Identification Number|
|ITIN||Individual Taxpayer Identification Number|
|ATIN||Taxpayer Identification Number for Pending US Adoptions|
|PTIN||Preparer Taxpayer Identification Number|