My mother was recently diagnosed with stage III cancer. She (nor any of us) does not have much money. Luckily, she has insurance, but it is income based.
I want to a crowdfunding campaign to help her with finances, but I don’t want it to push her out of being eligible for insurance. It seems that things like gofundme are considered gifts and therefore non-taxable income. Would she even have to report it?
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
First off, I’m so sorry to hear about the battle your mother is facing with cancer. Having lived through that battle myself, I know how tough it can be on both of you.
It’s been a while since I wrote My Crowdfunding Donations to Help a Sick Friend Are 1099-K Taxable Income?
So I went back and took a look at updates since that time. Unfortunately it still appears to be an unresolved situation. As it stands, the person receiving the money would still face a potential tax implication. Washington State has a nice page describing their approach. But generally this all falls under the heading of no good deed goes unpunished.
Then there is this video.
So unless you can find a local accountant to give you an alternative, it looks like the money raised will be taxable to the person receiving the money. Be prepared for the tax bill in advance.
- Strategic Financial Solutions and Ryan Sasson Stumble and Get Pounded - February 13, 2024
- These Emotions Stop You From Getting Out of Debt - January 11, 2024
- 16 Common Myths About Getting Out of Debt That Everyone Gets Wrong - January 8, 2024