topic Tax Responsibility For Facebook Fundme Account in Deductions & credits

Tax Responsibility For Facebook Fundme Account

Mstrwooley — Tue, 20 Aug 2019 16:34:01 GMT

I started a facebook fundme account for a friend of mine battling cancer. The fund raised 9440.00. I ran all of the money through my checking account. Am I on the hook for taxes on this money and if so...what would be the rate? Thank you.

Dave R

Re: Tax Responsibility For Facebook Fundme Account

Anonymous_ — Tue, 20 Aug 2019 16:46:07 GMT

Those donations would typically be viewed as gifts (not tax deductible, though), but the following is Facebook's view and policy:

Funds that you receive through a personal fundraiser on Facebook may be taxable. Factors that determine if the funds are taxable include the amount received, the intended use of the funds and the location where you reside. Please consult a tax professional for questions.

Note: If you raise more than $20,000 in donations from fundraisers on Facebook in a year, you'll receive a 1099 form. The 1099 form comes from Stripe, the company that processes payments for personal fundraisers on Facebook.

Re: Tax Responsibility For Facebook Fundme Account

Mstrwooley — Tue, 20 Aug 2019 17:08:07 GMT

Thank you for your reply. I am aware of this wording. It's the (may be taxable. Factors that determine if the funds are taxable include the amount received, the intended use of the funds and the location where you reside) that troubles me. I have spent two weeks trying to get answers to that illusive wording. Both of my past tax accountants have not called me back. I guess I'm not enough money to them anymore. That seems to be the bottom line that drives all this. Very lonely out there in the money world. DR

Re: Tax Responsibility For Facebook Fundme Account

Anonymous_ — Tue, 20 Aug 2019 17:17:45 GMT

The link below with provide you with some additional information, including tips on keeping records.

https://www.journalofaccountancy.com/issues/2018/mar/donation-based-crowdfunding.html

Re: Tax Responsibility For Facebook Fundme Account

Mstrwooley — Tue, 20 Aug 2019 18:30:27 GMT

Thank you... Dave R