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In a word: ouch. Kickstarter and Indiegogo send 1099s. Gumroad doesn't, but between this and my stock market gains I'm in a really nasty tax bracket, so I set a
by austenallred 10y ago
In a word: ouch. Kickstarter and Indiegogo send 1099s. Gumroad doesn't, but between this and my stock market gains I'm in a really nasty tax bracket, so I set a bunch of it aside for taxes. Luckily? I usually spend a lot of the money I earn from side projects on funding other failed side projects, but I basically plan on giving up 30-40% of side project earnings for taxes.
There is some fancy stuff you can do that helps, but once you get above a certain income level you just have to pay.
- exolymph 10y ago> once you get above a certain income level you just have to pay. lol, I weep for you, Austen
- rwmurrayVT 10y agoI feel your pain. 2016 was my first full year of employment after graduation and I made substantial (short-term) capital gains. I was not thrilled when I filed to say the least.
- pc86 10y agoYou're not paying 30-40%. Marginal rates are capped at 39.6% and the vast majority of your income is taxed below that unless you're making many hundreds of thousands of dollars every year. Stock market gains are 15% unless you're selling within a year of purchase, and even then they're only taxes as any other income, not penalized in any way. This isn't even taking into account the deductions like home office(s), having your business pay for as many expenses as you can reasonably argue, etc.