The 1099-K trap (in both directions)
Patreon processes payments for you, so it reports on Form 1099-K rather than 1099-NEC. After the 2025 tax law, the federal 1099-K threshold is back to $20,000 AND 200 transactions (some states set lower thresholds, so a form can still arrive below that). Two traps follow: creators under the threshold assume no form means no tax, and creators over it forget the 1099-K shows gross payments, before Patreon's fees, which you deduct as an expense (IRS: Understanding your Form 1099-K).
Set-aside, computed
| Net profit | Set aside (federal) | Effective rate | Per quarter |
|---|---|---|---|
| $12,000 | $1,696 | 14.1% | $424 |
| $25,000 | $4,103 | 16.4% | $1,026 |
| $45,000 | $8,579 | 19.1% | $2,145 |
| $60,000 | $12,037 | 20.1% | $3,009 |
| $90,000 | $19,316 | 21.5% | $4,829 |
Computed with Sero's tax engine (2026 IRS figures): single filer, standard deduction, QBI deduction included, self-employment income only, no state tax. Your situation will differ. Estimate only, not tax advice.
Patreon-specific write-offs
- Patreon's platform and payment processing fees
- Costs of member rewards you produce and ship
- Tools you use to make member content: recording gear, software, hosting
Want your own number, with expenses and your filing status? Run the free creator tax calculator. It uses the same tested engine as the Sero iPhone app (coming for tax season 2027), and everything you type stays in your browser. Patreon income, brand deals, and tips all count as self-employment income in the estimate.