Since using Patreon makes you obligated to pay taxes, I was wondering... When i pay my taxes do I have to state from where exactly the money came from or can I stay anonymous? I really dont feel like telling the world "I make porn games". Sorry in advance if this question was a little dumb or previously answered but I seriously want to know cause I never had to pay taxes till now.
- Jun 25, 2017
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Assuming that you're in the US, you would most likely list this income on Schedule C, which is for self-employment income. Part of that form requires you to categorize the type of "business," but the business codes they provide are VERY broad. So, you wouldn't have to get much more specific than "software development" or something like that.
Thanks for the info. I'm outside the US, is there any website which has all these country specific identification codes or does it vary. One more thing, when making a Patreon account, somewhere it said to fill out your personal info for tax reasons, what does that mean, do they report your taxes or your info to someone or is it just for the sake of keeping logs.
- Mar 9, 2018
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How old are you?
More seriously depending on the amount you are going to receive (and your country) you should consider creating a legal structure for your gains.
In some european countries the threshold that makes it a pain in the ass is very low.
In which country are you taxable?
Well I'm 20 and I live in Croatia, I don't really know if that will help you provide me some useful info though.
- May 19, 2017
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It's not just keeping logs. Patreon collected money, If they can't show that they redistributed the money to YOU, then Patreon would have to pay taxes on the income.
Look up taxes in your country, talk to a tax attorney, or an accountant. Every country does things differently. The Queen is really going after tax-cheats who hide income offshore.
- May 19, 2017
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Hmm... So lets say that I made 26400 HRK (3559.72 EUR) in a year on patreon, by reading the wiki page does that mean that I'd have to pay 3168 HRK (425.91 EUR) which is 12% or am I missing something?
- May 19, 2017
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Can't speak for how they do things in Croatia, so you'll need local advice on details. Usually you deduct your expenses from what you received, leaving a "taxable income" after costs. a computer, software, graphics card, advertising, other things you purchased to the work, may be allowed to be deductible in one year, or sometimes split over five years.
Damn. Making a game just got a little bit more complicated. I guess I'l look into that myself then, but nevertheless thanks for taking the time to provide some info.
- Mar 9, 2018
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If you declare it as personal income and you didn't earn anything else then yes, you'll be taxed 12% of 26400 HRK.
Your best bet is to find a professional accountant from your country that will know exactly how you are supposed to declare that income.
Your best bet is to find a professional accountant from your country that will know exactly how you are supposed to declare that income.
Not all countries allow to do that on your income taxes, specially the computer and software part (you can just deduct transportation and food in some cases…) if you don't setup a company.
That is true for any money you earn online, not just patreon.
The only exception is a real life job in which the taxes are already deducted.
The only exception is a real life job in which the taxes are already deducted.