Ever wonder what stance the IRS takes regarding Online Crowdfunding? Well here's your answer.
Online Crowdfunding Tax Guidance Reminder: The IRS released a reminder to taxpayers regarding the guidelines for the tax treatment of distributions and contributions from online crowdfunding. Crowdfunding is a way to raise money by soliciting contributions from a group of people via a website. For distributions made from a crowdfunding website or its payment processor in 2024, a Form 1099-K (Payment Card and Third-Party Network Transactions) must be filed with the IRS and to the person or entity that received the payments if the reporting threshold is met ($5,000 for 2024). Receiving a Form 1099-K doesn't automatically mean the amount reported in Box 1 of the form is taxable to the person receiving the form. Whether crowdfunding distributions must be included in a recipient's gross income depends on all the facts and circumstances of the distribution. Generally, money received as a gift is not included in the recipient's gross income. Fact Sheet 2024-28.
Question of the day.... what's the difference between gifting funds to a crowdfunding site and sending zaps? I say nothing......
Have a great day playing in the NOSTRVerse....🤙
chriso / Chriso🇺🇸🇦🇺🦘⚡️
npub147…djwdr
2024-09-23 14:26:23
Author Public Key
npub147wy3decmxy3vs9u4nse80ha7nkcydt7zdge8lc9gk8ddglh4t6qudjwdrPublished at
2024-09-23 14:26:23Event JSON
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"content": "Ever wonder what stance the IRS takes regarding Online Crowdfunding? Well here's your answer.\n\nOnline Crowdfunding Tax Guidance Reminder: The IRS released a reminder to taxpayers regarding the guidelines for the tax treatment of distributions and contributions from online crowdfunding. Crowdfunding is a way to raise money by soliciting contributions from a group of people via a website. For distributions made from a crowdfunding website or its payment processor in 2024, a Form 1099-K (Payment Card and Third-Party Network Transactions) must be filed with the IRS and to the person or entity that received the payments if the reporting threshold is met ($5,000 for 2024). Receiving a Form 1099-K doesn't automatically mean the amount reported in Box 1 of the form is taxable to the person receiving the form. Whether crowdfunding distributions must be included in a recipient's gross income depends on all the facts and circumstances of the distribution. Generally, money received as a gift is not included in the recipient's gross income. Fact Sheet 2024-28.\n\nQuestion of the day.... what's the difference between gifting funds to a crowdfunding site and sending zaps? I say nothing......\n\nHave a great day playing in the NOSTRVerse....🤙 ",
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