Go Fund Me — taxable to recipient?
Are funds raised through "Go Fund Me" pages taxable? Recently it was reported on the news that some young woman had started a "Go Fund Me" page for a homeless veteran and (at that time) had raised nearly $400,000. Does she have to pay income taxes on the money raised? I realize that if the "Go Fund Me" page was started by a non-profit (i.e....Red Cross) then probably no tax liability.
Terry Says
You're getting confused between being a recipient of a gift, and a giver getting a tax deduction. Anyone can give up to $14,000 per year to any one, or any number of people. This gift is not a deduction to the giver -- nor is it taxable to the recipient. If the giver makes a gift to a recognized charity, then the amount given can be deducted on income taxes, subject to certain limitations. And gifts of property to a charity must be accompanied by at least one independent appraisal in order to substantiate the deduction. But the recipient of the "Go Fund Me" account has been given a legitimate gift by many people, and the government does not get to take any of it!
