Double Tax Issue on Patreon
The Hidden Patreon Double Tax...
Would love to be shown wrong here, but as far as I've found, money on @Patreon is taxed for both patron and creator. In any other situation, only the giver or receiver is taxed, not both. Donations to non-profits are deductible, salaries of employees are deductible expense for the employer, even traditional non-Patreon patron/sponsorship arrangements are at least some form of write-off/expense for the sponsor. But for Patreon, unless you go through the excessive effort of establishing yourself as a company with an elaborate case for how giving to artists is business-related or straight up start a non-profit organization yourself, the money you give on Patreon is going to be from income you paid taxes on, and then that creator also pays taxes on it as their income.
This is a simplification of the math but just to illustrate: If you made $100k this year and wanted to give away half to artists on Patreon, you literally can't...[More]
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