Using Kickstarter to fund your homestead? | Page 2 | General Homesteading Discussion | Forums

Paypal is the same in 2.9% + .30 cents per transaction. Although I think if it is sent as a donation or from friend/family that you might have that fee waved. Then you will be charged a fee if you want a check sent to you. Although if you are transferring directly from paypal to your linked bank account there is no fee. There is also no fee if you want to use your Paypal Debit card.

From what I can see on Kickstarter there is no fees. But you do have to use the Amazon Payments so it is more like a business transaction than a donation situation.

The main thing I wonder about is how you claim this on your taxes- becasue lets face it we don't want to pay more than we are required to.

It looks like through kickstarter you are issued a 1099. Where I think through paypal you are responsible for anything with taxes.

So I would be really interested to hear if anyone has info on the tax situation for this.

From Kickstarter:

In general, funds raised on Kickstarter are subject to taxes. But 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. They can guide you through your particular tax scenario in the most advantageous way possible.

Amazon Payments handles transactions conducted through Kickstarter for US projects. Amazon Payments will file Form 1099-K to report unadjusted annual gross sales information for people who meet both of the following thresholds in a calendar year:

• More than $20,000 in gross sales, and

• More than 200 transactions.

You can read more about this on Amazon Payments' tax reporting information page. In general, even if you don’t receive a 1099-K, the funds you raise on Kickstarter are still subject to taxes. We also recommend that you speak to an accountant or a financial advisor for more information.

So it sounds like you might want to be in touch with an accountant on this matter.