Go Fund Me and taxes

[bob91yj]

I was reading about the homeless college kid in Georgia that someone started an account for. He now has $184,000 in his account. Is that money taxed?

 

[Gallowbraid]

The money has been moved to a trust now to be paid out for his tuition and expenses. Trusts withdrawals are taxed in some circumstances, but usually when the money put into the trust wasn't taxed originally. Hard to say in this case...

 

[bob91yj]

Either way it was a cool story, there is some good left in this world! I'd just hate to see him lose half of it to the taxman.

 

[Dean]

Technically GoFundMe donations are not taxed because they are "gifts." It's up to the person to report the added income when they file taxes if the amount is over a certain figure. I've used the site twice now and I requested a 1099 to cover my own ass and treated it as income for my business when I pre-sold books and stuff for my trip last year and will do the same this year.

In short, does GoFundMe file any tax paperwork, no. Should the recipient claim it on their taxes, yes.