[x]Blackmoor Vituperative

Saturday, 2013-11-23

Accounting for Kickstarter

Filed under: Gaming,The Internet,Work — bblackmoor @ 19:47
Wallet

When it comes to accounting for the money raised through Kickstarter etc., most people seem aware of the 5% Kickstarter fee, the ~4% Amazon fee, the 1%-5% billing failure, and the potential for as much as 10% to be lost in chargebacks. What I don’t see many people mentioning is the amount of income tax the IRS is going to take of the amount raised (if you are a US citizen). In Europe, you may have VAT, which is even more complicated. Established businesses already know about this, of course, but since many people who start a Kickstarter campaign are hobbyists and startups, I thought this was a worthwhile thing to point out: keep taxes in mind when you are estimating how much you will need to raise to complete your project.

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