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(Disclaimer: researched it myself due to it impacting me, but I'm not a lawyer or CPA.)

The short answer is: I think you probably do have to report them as income.

If it's a donation to the LLC, I don't think there's any way around it; if you're running a business and people are giving that business money, it's income.

If it's a donation to you, personally, you could argue it's a personal gift, not income. But that's sort of gray area. If, say, you had cancer, and were asking people to send money to pay for your treatment, you could plausibly argue that those are gifts. But if it's a donation button on a web-app that provides a service, it looks a lot more like a "tip jar", which would make it as taxable as an IRL tip jar is.



Thank you. Great points, and gives me a good starting point.




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