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Level 1
January 4, 2025
Solved

qeuestion

  • January 4, 2025
  • 1 reply
  • 3 views

If my website generates income through donations, do I need to pay taxes on that income? Additionally, how can I determine how much tax I would owe, if any? I’d like to understand the specific rules, such as whether donations are considered taxable income, and if there are any exemptions  or thresholds that might apply. Could you clarify this, especially if the website is a nonprofit  or operates in a personal capacity?

 
 
 
Best answer by Mike9241

The general rule is that all income is taxable. The exception is if you're registered as a non-profit entity with the iRS/state. Just declaring your website to be not-for-profit is not enough.  This would probably require a lawyer to draw up the necessary legal documents. 

1 reply

Mike9241
Level 15
Mike9241Level 15Answer
Level 15
January 6, 2025

The general rule is that all income is taxable. The exception is if you're registered as a non-profit entity with the iRS/state. Just declaring your website to be not-for-profit is not enough.  This would probably require a lawyer to draw up the necessary legal documents. 

Mike9241