Tax Warning: GoFundMe donations can cost you a big tax bill

Crowd funding or crowd sourcing has exploded in popularity. From campaigns for a boy's medical bills, a man's trip to study abroad, or a woman's expenses to attend an opera academy. All in need of money for their own reasons. But you could be setting yourself up for some unexpected tax implications.

[cody]

So we as Americans face bankruptcy when we go to the hospital and when kind citizens help us out, we get taxed on the donations that were needed to cover the cost for our disastrous healthcare system. Great country we have here.

[bullionbouncer]

Money that has already been taxed should not be taxed again wtf

[tarheelnation_]

Gofundme is considered “personal gifts”. It’s non taxed ppl

[barrylodriguss]

It is very sad that people cannot raise money or do anything without the Government being in their Business !

[darrellhart]

Next up, Go Fund Me to pay a Go Fund Me tax bill.

[CarlosGutierrez-tbkp]

If they going to tax for a gofundme, then tax churches. They get donations.

[sbdr.]

I always said government is like or worse than mafia

[thedarwinist]

Leave it to government to ruin a perfectly good thing

[wildandliving]

The worse part is most of the people that donate are friends and family. Gofund me also takes a cut

[nobad]

Government is the biggest Gangster of them all.

[robertdirocco]

Give cash under the table and cut out these government crooks

[abghani]

America...land of dreams hhh...wtf?!! How do you guys arrange to live with this system?!!!

[motleyassortment]

So, they took about 60 % for tax.

They act like you have just won their lottery game, the tax taken out is ridiculously high.

You get the whole pie, but you have to share a piece of the whole pie with them.

[natureboy]

And if your on SSI or SSDI, all moneys must be reported to the SSA and will be deducted from your disability check!!! FACT!!!

[DevilTravels]

So my neice may have to pay taxes on her GoFundMe campaign to afford her father's funeral? That's kind of a kick to the gut.

[wilts]

This is daylight robbery. What is the justification of taxing donations?

[fruitofthespiritgalatians]

They were already taxed from us that gave.

[late]

Good to know the family didn’t have to pay anything. What I’ve gathered from several videos is that you need to keep records so that you can prove the money wasn’t from you selling an item or service.

[tgmaps]

That's why i add the tax charged to the go fund me.

[reyr.]

I hate the healthcare system in this country. We need to have nationwide free healthcare.