Does Patreon counts as making money?

carcav

New Member
Jul 1, 2017
13
5
I have been observing many games and creators, and I suddenly got a big doubt, does patreon earnings count as making money from the game? I am not talking about taxes (that’s a matter of the developers countries tax systems) I am talking about the licenses, for example, Ren’py gives you a free license as long is not for commercial use, and the developers are earning money from patreon, although as I see it that money does not come from the commercialization of the game itself, but for the development, and since many games can’t be commercialized even if they get complete due the fact the developers use characters that belong to other companies, or legally can’t be sold for the themes touched by the game’s story, there will never be a direct income from the game itself, still there is an income that only can be achieved for the use of the game engine, so the problem still exist, should patron earnings be considerate a form of commercial gain from the game or not?
 

Sam

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Dec 22, 2016
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Ren'Py is completely free for both personal and commercial use.

For other engines which have restrictions on commercial use (like Unity for $100k+ turnover, or Unreal), developers would need a paid commercial licence. Although many don't seem to bother with that, as enforcement very rarely happens.
 
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DaScoot

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Jul 8, 2017
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Also I wouldn't be surprised if there's been no Patreon Unity games to have broken $100k yet. Cloud Meadow might make it but I think they're already using a pro license.
 

gamersglory

Xpression Games
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Aug 23, 2017
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If you're worried about taxes If you live in the US Patreon does require you to give info so they can send you a 1099 form. Which for those of you outside the US is an IRS tax form company's use to report profits made by your account that have not had taxes withheld. If you make four or more figures a year on Patreon you might owe taxes as that would be enough to put you in a different Tax Bracket. I would think in any country if you are making $1000 or more a year on Patreon you owe your government money. As it is Income
 

Qleaf

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Oct 14, 2016
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If you're worried about taxes If you live in the US Patreon does require you to give info so they can send you a 1099 form. Which for those of you outside the US is an IRS tax form company's use to report profits made by your account that have not had taxes withheld. If you make four or more figures a year on Patreon you might owe taxes as that would be enough to put you in a different Tax Bracket. I would think in any country if you are making $1000 or more a year on Patreon you owe your government money. As it is Income
You will get asked by Patreon if yourin a Country where is Tax is applied so they take care of it for you, or else you’ll be signing a form to state otherwise.
 

gamersglory

Xpression Games
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Game Developer
Aug 23, 2017
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For tax purposes Patreon donations count as extra income so yes it's taxable