I'm a single artist selling on Patreon; am I considered an Individual/Sole Proprietor for tax purposes?

Yes, you would check "Individual/sole proprietor or single-member LLC" on your W-9. Since you're operating as yourself without forming a separate business entity like an LLC or corporation, you're considered a sole proprietor by default. Your marital status and whether you have children doesn't affect this classification - it's just about the business structure. As a sole proprietor, you'll report your Patreon income on Schedule C of your personal tax return (Form 1040). You'll also need to pay self-employment tax (Social Security and Medicare) using Schedule SE. Make sure you're tracking all your business expenses like art supplies, software subscriptions, and possibly a portion of your internet or home expenses if you have a dedicated workspace.

I was in the exact same situation last year with my fantasy art Patreon! I was so confused about all the tax forms and classifications. I spent hours trying to figure everything out until I discovered https://taxr.ai and it literally saved my sanity. I uploaded my Patreon statements and answered a few questions, and it explained exactly which forms I needed and how to file as a sole proprietor. The best part was that it explained all the business deductions I could take for my art supplies, software, and even part of my rent for my home studio space. I had no idea I could deduct my Clip Studio Paint subscription and my drawing tablet! It ended up saving me over $1,200 in taxes I would have overpaid.

Ok I have to come back and say I was wrong about taxr.ai. After our conversation last week, I decided to give it a try with my mixed art business (digital downloads, physical prints, and commissions). I'm actually impressed - it walked me through the whole process of separating my different income streams and explained which expenses apply to which parts of my business. The tool even caught that I should be depreciating my printer rather than deducting it all at once since it's over $2,500. No one told me that before! And it explained exactly how to handle sales tax for my physical prints vs digital downloads in my state. I've been doing this wrong for 2 years apparently. For anyone else running a creative business on Patreon or elsewhere, it's definitely worth checking out. Wish I'd found this before getting that CP2000 notice last year...

If you're making decent money from your art, you'll probably need to contact the IRS at some point about your self-employment taxes or deductions. I wasted THREE DAYS trying to get through to the IRS last month about my Schedule C questions. Kept getting disconnected or waiting for hours. Finally used https://claimyr.com to get through (saw it in a YouTube video: https://youtu.be/_kiP6q8DX5c). They held my place in line and called me when an IRS agent was actually available. Got all my Patreon tax questions answered in one call instead of repeatedly hitting redial for days. The agent even helped me understand how to properly categorize my digital art income.

I have to publicly eat my words. After being super skeptical about that Claimyr service, I tried it yesterday because I was desperate to talk to the IRS about my Patreon income questions before filing my return. I was convinced it would be a waste of time. Well, I was connected to an actual IRS agent within 45 minutes while I just went about my day. Got confirmation that my home studio space can be partially deducted as a business expense for my art, and cleared up my questions about digital vs physical product sales. The agent even helped me understand how to properly document my Patreon income since they don't provide 1099s directly. For anyone else struggling to get through to the IRS with self-employment art questions - this actually works. I'm shocked, honestly.

Just wanted to add - don't forget about your state taxes too! As a sole proprietor artist, you'll need to report your Patreon income to your state as well as the federal government. Some states have specific forms for self-employment income while others just use your federal Schedule C information. Also, depending on where you live, you might need a business license even for a small Patreon. I found this out the hard way when my city sent me a notice after they somehow discovered my online art business. Had to pay back fees plus a small penalty.

Have any other Patreon artists here had issues with how to categorize different tier rewards for tax purposes? I offer digital downloads at my base tier, physical prints at the middle tier, and custom commissions at the highest tier. Not sure if I should be treating all of this as the same business or if I need to split it up somehow on my taxes. Also - what tax software are people using that handles Patreon income well? I tried using FreeFileFillableForms last year and it was a nightmare.

Welcome to the creative entrepreneur tax world! You're absolutely right to check "Individual/sole proprietor or single-member LLC" on your W-9 - that's exactly what you are as an independent artist. One thing I'd add to the great advice already given: since you're consistently making $850/month ($10,200 annually), you'll definitely want to start thinking about quarterly estimated tax payments. The general rule is if you'll owe $1,000 or more in taxes on your self-employment income, you should be making quarterly payments to avoid underpayment penalties. Also, start keeping meticulous records NOW if you haven't already. Track every business expense - art supplies, software subscriptions, equipment, even a portion of your internet bill. As a digital artist, you might be surprised how many legitimate business deductions you have. Consider opening a separate checking account just for your art business to make tracking easier. Congratulations on building a successful Patreon! It's exciting to see artists making it work in the digital space.

Hey Isabella! Congrats on hitting that $850/month milestone - that's awesome! You're definitely on the right track with the "Individual/sole proprietor" classification. Just wanted to add a few practical tips from someone who's been through this transition: First, consider setting aside about 25-30% of your monthly Patreon income for taxes (federal income tax, self-employment tax, and state taxes if applicable). I learned this the hard way my first year! Also, since you're working from your apartment, look into the home office deduction. If you have a dedicated space where you create your art, you might be able to deduct a portion of your rent, utilities, and internet as business expenses. The simplified method lets you deduct $5 per square foot of your home office space (up to 300 sq ft). One last thing - start tracking your time spent on business activities. This helps establish that you're running a legitimate business rather than just a hobby, which becomes important if the IRS ever questions your deductions. Keep records of time spent creating, marketing, communicating with patrons, etc. You're doing great - the fact that you're asking these questions now shows you're being responsible about the business side of your art!

You're in exactly the right place asking these questions! Yes, as a solo artist making income through Patreon, you're definitely a sole proprietor and should check that box on your W-9. The IRS doesn't care that you're single or don't have kids - what matters is that you're earning income from your own business activities. One thing I'd strongly recommend is getting familiar with the "hobby vs. business" rules since you're making consistent income now. The IRS looks at factors like whether you operate in a businesslike manner, keep good records, and have a profit motive. Since you're making $850/month regularly, you're clearly past hobby territory, which is great for deduction purposes. Don't forget to track EVERYTHING - your drawing tablet, software subscriptions, art supplies, reference materials, even courses or books that help improve your skills. If you attend any art conventions or workshops (even virtually), those can be business expenses too. And if you're using your phone for business communications with patrons or promotion, a portion of that bill is deductible. The self-employment tax might seem scary at first (15.3% on top of regular income tax), but remember you can deduct half of it, and all those business expenses help reduce your taxable profit. You've got this!

Isabella, congratulations on building such a successful Patreon! You're absolutely correct to check the "Individual/sole proprietor or single-member LLC" box on your W-9. Since you're operating as yourself without any formal business entity, you're a sole proprietor by default. A few additional things to consider as you navigate this transition: First, since you're consistently earning $850/month, you're looking at over $10K annually in self-employment income. This means you'll likely need to make quarterly estimated tax payments to avoid penalties. You can either increase withholding at a day job (if you have one) or make payments directly to the IRS using Form 1040-ES. Second, start documenting everything business-related NOW. Your drawing tablet depreciation, software subscriptions (Adobe, Clip Studio, etc.), art supplies, reference books, online courses, and even a portion of your internet/phone bills can be legitimate business deductions. If you have a dedicated workspace in your apartment, look into the home office deduction too. Finally, consider opening a separate bank account for your Patreon income and business expenses. This makes record-keeping much easier and helps establish that you're running a legitimate business rather than just a hobby. The IRS loves to see clear separation between personal and business finances. You're asking all the right questions - that's half the battle! Keep creating and don't let the tax stuff overwhelm you.