Generally, most reward items will be taxable, especially in the event that it is a physical or downloadable item. A non-taxable item is something that is intangible. We recommend checking with a qualified tax advisor if you’re unsure whether one of your reward items is taxable or not.
Some examples of non-taxable items may be:
- Thank you note
- Access to a newsletter
- Credit on a film, game, or book
- Social media shoutout
While some digital rewards may be non-taxable, below are some examples of digital rewards where tax should be collected:
- Downloadable content, such as a song, album, podcast, film, or game
- Steam key or access to an online game
- Digital artwork
- A pdf of a book or zine
For creators using Kickstarter’s Pledge Manager, all taxable items will need to be assigned a tax categorization code.
Disclaimer
This guidance is for informational purposes only and does not constitute tax advice. For specific questions about your tax obligations, consult a qualified tax advisor.