Discrepancy between 1099 and actual earnings

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1

Is anyone else seeing a greater amount reported on the 1099-K Patreon sent as compared to your actual earnings as disbursed to your bank account over the year?

I’ve contacted support about this by email and their responses so far aren’t proving particularly helpful.

I really do not want the IRS to be sent information indicating that I’ve earned a greater amount of taxable income than I actually did.

2

Hey @tomangell, thanks for making this post, let me dive into this but it does get pretty confusing so bear with me as there are a few things that come into play here.

  1. It looks like you made pledges to other creators, which you chose to come out of your earnings, which were pretty large some months.
  2. Your earnings is not what you receive in your bank account. Your earnings number is what your patrons pledged to you but what you get paid out is a different number (after your own patron pledges)
  3. We are reporting gross earnings as defined by the IRS so the information they have been sent is correct.
  4. If you want to see where the number on your 1099 came from, go to your Earnings Dashboard > download CSV for 2018 > add up the creator share column - that number matches the one on your 1099.
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4

Thanks, it looks like my pledges to other creators account for about 90 percent of the difference between the sum on the 1099 and what I deposited in the bank. I don’t know for sure, but I’m guessing the remainder might have to do with carried over pledges from the prior year that processed late in December and didn’t get disbursed until January’s haul.

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