Question

What are GoFundMe tax consequences for helping others?

Forum|Forum|2 years ago
October 17, 2023
3 replies
0 views

I am starting a GoFundMe page for helping a friend pay for their expensive medical treatment. The expensive medical treatment will be approximately $10,000. My friend would receive all of the $10,000. Will I have to pay taxes on the $10,000? Will GoFundMe send me any tax forms? What type of income will this $10,000 be reported as on my personal income tax return? Will my friend have to pay taxes on the $10,000? Will GoFundMe send my friend any tax forms? What type of income will this $10,000 be reported as on my friend's personal income tax return? If anyone could please provide any tax advice then I would greatly appreciate it. Please answer all my questions soon.

B

Bsch4477

Employee

If you get a form requiring reporting of the income you would report it and then report it again with a negative amount with the explanation of “pass through of GoFundme account “. The funds are a gift so the recipient will owe no tax and doesn’t have to report them.

N

NCPERSON1

@bchu3 it is quite unlikely you or the recipient would receive any tax forms as a result of gifts on GoFundME.

Gifts to friends are not reported on an income tax return - and that is the recipient or the donor.

if the recipient is a non-profit, they must send you a reciept for the gift and that document supports the contribution should you itemize.

Gofundme isn't a third party payment platform (like VENMO), so they wouldn't be issuing 1099-Ks.

Suggest you ask your questions to GoFundMe directly. Interesting, there is no mention of tax reporting on their website under FAQs.

B

Bsch4477

Employee

This information from the IRS addresses your question.

https://www.irs.gov/newsroom/money-received-through-crowdfunding-may-be-taxable-taxpayers-should-understand-their-obligations-and-the-benefits-of-good-recordkeeping