There has been a GoFundMe effort on behalf of a student who is ill and recently graduated from the local HS. DH and I donated. In fact, they have raised over $12K in since they put it up in only about 8 hrs! Anyway what are the tax implications for someone who is the recipient of this? The money will be given to this student's mother. Will the mother have to pay some portion of this as a tax? Not sure how this works exactly? Since the amount is getting fairly significant, you would hate to see someone be hit with a big tax bill that they didn't expect.
There has been a GoFundMe effort on behalf of a student who is ill and recently graduated from the local HS. DH and I donated. In fact, they have raised over $12K in since they put it up in only about 8 hrs! Anyway what are the tax implications for someone who is the recipient of this? The money will be given to this student's mother. Will the mother have to pay some portion of this as a tax? Not sure how this works exactly? Since the amount is getting fairly significant, you would hate to see someone be hit with a big tax bill that they didn't expect.
I've wondered this myself. But honestly, I can't think of any tax implications. I mean, if your neighbor gave you $50, it wouldn't be taxable, it's a gift. As a matter of fact, when it comes to monetary gifts, the giver is the one with the tax implication. I believe the number is $13K per year per person now. You can gift up to that amount each year to a single person without tax implication. The tax impact is on your estate. For example, if the federal gov't taxes an estate with a value of more than $1M (not sure of the actual number) and you gift more than the 13K then the taxable amount of your estate is 987,000.
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Sometimes you're the windshield, and sometimes you're the bug.
Incorrect. We had a gofundme acct for a grandmother that got custody of her 6 grandkids because their parents were killed in a car accident. They said it was income. I will have to find the link...
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America guarantees equal opportunity, not equal outcome...
Gift exclusions are up to $14k now, without resulting in tax to either donor or recipient. Payments made directly to medical expenses or tuition are not considered gifts, and are reported as income.
Donations in excess of $20k and 200 transactions must be reported to the IRS.
If money is donated towards a business adventure, it is not considered a gift and is considered business income, unless the donor receives stock or equity in return. But then it would not be considered a gift, either.
The problem with gofundme accounts is that they are set up by third parties, and how much control they have over these funds can make it taxable. If the third party is merely a conduit, language to this needs to be included in setting up the account, and the third party needs to keep his hands off the money, in order for the gift exclusions to apply.
Maybe I should start a gofundme so I can buy pokeballs....
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A flock of flirting flamingos is pure, passionate, pink pandemonium-a frenetic flamingle-mangle-a discordant discotheque of delirious dancing, flamboyant feathers, and flamingo lingo.
Can we send requests to each other for balls like we do candy crush lives?
Gimme yer balls!
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A flock of flirting flamingos is pure, passionate, pink pandemonium-a frenetic flamingle-mangle-a discordant discotheque of delirious dancing, flamboyant feathers, and flamingo lingo.
