Missing Marshalltown Kid

[isufbcurt]

Pretty positive gofundme $$ isn’t taxed or reported but when you have specifics of what they are doing instead please post

I'd like to know a definitive answer on this because I've seen conflicting answers.

 

[KHoing07]

I didnt know there was quite a bit of other people from Marshalltown on here

 

[jkbuff98]

Fixed the link

Excellent , thank you

 

[jkbuff98]

I'd like to know a definitive answer on this because I've seen conflicting answers.

https://blog.cookmartin.com/gofundme-account-taxable
This offers a pretty good explanation

 

[BikeSkiClone]

I'd like to know a definitive answer on this because I've seen conflicting answers.

Even the GoFundMe site isn't super clear. Bit of "if this, then that...but in xyz situations, it might be taxed" https://support.gofundme.com/hc/en-us/articles/204295498-Taxes

Donations made to GoFundMe campaigns are usually considered to be "personal gifts" which, for the most part, aren’t taxed as income.

However, there may be particular case-specific instances where the income is in fact taxable (depending on amounts received, use of the funds, etc.), so we recommend that you maintain adequate records of donations received and consult a tax professional to be sure. GoFundMe will not report your donations as income at the end of the year, or issue any tax documents. Because everyone's situation is different and tax rules can change from time to time, we’re unable to give any tax advice.

I do know that money received from a GoFundMe counts toward income when it comes to qualifying for Medicaid and other programs based on income. I work in a hospital with patients who will have lifelong disabilities when they leave us, and when they go to apply for Medicaid and the like, have to "spend down" or get creative with where to put their GoFundMe money so they don't have too many assets.

 

[isufbcurt]

Even the GoFundMe site isn't super clear. Bit of "if this, then that...but in xyz situations, it might be taxed" https://support.gofundme.com/hc/en-us/articles/204295498-Taxes



I do know that money received from a GoFundMe counts toward income when it comes to qualifying for Medicaid and other programs based on income. I work in a hospital with patients who will have lifelong disabilities when they leave us, and when they go to apply for Medicaid and the like, have to "spend down" or get creative with where to put their GoFundMe money so they don't have too many assets.

The Medicaid thing is why I had the question. The situation was as follows:

A tax client owns a second house that his disabled brother in law lives in. The Bil is on Medicaid. They wanted to do like $50,000 of upgrades to the house to make it more accessible to the Bil. However, the Bil can't do a Gofundme because it would count as income and maybe kick him off Medicaid. So my tax client was wanting to do a Gofundme in his name to raise the money. Because I couldn't find a definitive answer on if he would have to report it as income they never did it (to my knowledge).

 

[3TrueFans]

The Medicaid thing is why I had the question. The situation was as follows:

A tax client owns a second house that his disabled brother in law lives in. The Bil is on Medicaid. They wanted to do like $50,000 of upgrades to the house to make it more accessible to the Bil. However, the Bil can't do a Gofundme because it would count as income and maybe kick him off Medicaid. So my tax client was wanting to do a Gofundme in his name to raise the money. Because I couldn't find a definitive answer on if he would have to report it as income they never did it (to my knowledge).

*wink wink*

 

[isufbcurt]

*wink wink*

I figure "plausible deniability" works for college coaches it'll work for me too.