We are very sorry for the loss of a family member. Unfortunately, since the beneficiary of the GoFundMe funds you want to set up doesn`t live/reside in the U.S., this isn`t a U.S. income tax question we can answer to help you. You will need to contact a tax specialist in the recipient`s country to find out if there are any taxes. We also recommend that you use the “Get Help” button at the bottom of this GoFundMe page: support.gofundme.com/hc/en-us and then follow the instructions. It gives you the option to send them your question directly via email. They are usually very responsive. Good luck to you and your family. If my teenage son creates a Gofundme for educational purposes like a school trip to WA and I choose to offer a free photo shoot on the side for anyone who donates a particular office+, would his Gofundme be taxable? Congress has not enacted any legislation on the subject, and the Internal Revenue Service has not adopted any Federal Register rules on the subject.
But tax planners still have work to do. If those who give receive nothing in exchange for their contribution, what people give is a donation and not taxable. Since the funds did not go directly to or on behalf of the recipient, the IRS may consider it a gift from the organizers to the recipient when the services are paid on their behalf. If this is the case, the organizer may be required to file a donation tax return if the annual amount exceeds the filing requirements. If an account is opened in the name of a person, all income earned in the bank account is taxable on the income shown on the account. Apart from the interest income that is taxed on the account, there is no income tax effect on the names on the account. Any non-tax involvement, if any, is outside the scope of the GoFundme discussion. Good luck.
I have a company incorporated as an LLC and I am the sole owner of it. I opened the company in defiance of our governor`s decommissioning mandate. The cause I am trying to defend has more to do with personal freedom and freedom than the company itself. I am threatened with fines and legal costs. The people who support our cause have set up a legal defense fund for me. Are these funds a donation to the company and taxable or are they gifts to me (since the costs they are supposed to cover come from my pocket and not from the store)? As I said, the thing I`m trying to defend has more to do with personal freedom and freedom than the company itself. It is clear to contributors that their support is for the cause and not necessarily for the company. In general, contributions to “crowdfunding” campaigns (such as GoFundMe) are considered personal gifts and are therefore not taxed as income for the recipient.
The IRS does not consider the proceeds of fundraising to be a taxable source of income. However, you could still owe taxes depending on how the funds were used and whether anything was provided in return. If you are the beneficiary of a crowdfunding campaign, be sure to keep a good record of the contributions received and contact your tax advisor. I received $20,000 in donations from GoFundMe to cover expenses for me and my children because I have undergone cancer treatment and am unemployed. Do I have to declare it with my taxes? Assuming Joe, Mary and the family didn`t give anything to any of these 201 people in exchange for their money, the $30,000 can be considered a gift – it`s not subject to taxes paid by the recipients of the donation. Unfortunately, we`re not familiar with FaceBook`s fundraising practices. Based on this link, www.facebook.com/help/388137821570791 Facebook sends a Form 1099 to anyone who raises more than $20,000. The lawyer and the CPA of his State (whom he has consulted) can have information specific to his situation and can provide him with the most accurate information according to the amount received and the use of the funds according to his place of residence. We recommend asking further questions of the lawyer and the CPA for clarification. You are not required to report funds received from a GoFundMe campaign as income on your tax return until all contributions to the GoFundMe account have been clearly stated in the description and those who have made a donation have not received anything in exchange for their contribution. Answering the question of the impact that funds received can have on Social Security or other sources of income would be beyond the scope of the GoFundMe discussion.
We recommend that you visit your state`s CPA company website to find a local tax advisor. Contributions to crowdfunding have further darkened the water. .