Tax Responsibility For Facebook Fundme Account

[Mstrwooley]

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

[tagteam]

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.

[Mstrwooley]

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

[tagteam]

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

[Mstrwooley]

Thank you... Dave R