Crowdfunding distributions may be includible in the gross income of the person receiving them depending on the facts and circumstances, the IRS reminded taxpayers. The crowdfunding website or its payment processor may be required to report distributions of money raised if the amount distributed meets certain reporting thresholds by filing Form 1099-K, Payment Card and Third Party Network Transactions. Reporting thresholds for a crowdfunding website or payment processor to file and furnish Form 1099-K are: (1) for calendar years 2023 and prior — if the total of all payments distributed to a person exceeded $20,000 and resulted from more than …
IRS Fact Sheet: Online Crowdfunding Contributions, Distributions Guidelines
