Video instructions and help with filling out and completing When Form 944 Pr Veterans

Instructions and Help about When Form 944 Pr Veterans

Crowdfunding or crowdsourcing of these GoFundMe pages really has exploded in popularity anytime you make money you're gonna owe money right here's while it's an easy way to raise money you could be setting yourself up for some unexpected tax implications I've got a Florida couple right they raise $50,000 through GoFundMe to help pay medical bills by the end of the year the IRS hey you owe us $30,000 in taxes on the money that you raised well now while GoFundMe does have it listed on their website most donations are considered personal gifts and are not subject to income tax it warns every situation is different and that you should consult a tax expert all Trigg will be the 1099 that GoFundMe sent you okay now the 1099 is out there the IRS gets to 1099 and they're looking for that income somewhere on your return all right well the annual exclusion is $14,000 so if you raise more than that you could end up paying taxes on the gift what you don't have to pay taxes on here you go gifts to your spouse gifts to a political organization for its use and tuition or medical expenses that you pay for somebody else in the case of the Florida couple they had all the receipts proving that donations went to medical bills a letter from their CPA to the IRS cleared it all up.