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Taxes on free pro memberships Answered

Does anyone know if when one gets some Instructables Pro membership because one's instructable gets featured, does one have to report the value of the membership to the IRS as taxable income?

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Kiteman (author)2011-12-17

In the UK, I would say "no", because it's a prize as opposed to an earned reward.

In addition, there is no direct link between this site and your personal accounts, so there's no way for the IRS to trace you anyway...

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arpruss (author)2011-12-16

I still haven't been able to figure this out. (Of course, more tangible prizes are reportable as income.)

But I did find out from the Texas tax people that no Texas use tax (the tax one legally has to pay on out-of-state Internet purchases) is owed by the recipient of prizes from Instructables, whether tangible prizes and memberships. I think how such things are handled will differ from state to state.

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