Are GoFundMe donations for medical expenses taxable income? Questions about taxes on fundraising money

You shouldn't need to worry about paying taxes on the GoFundMe donations. The IRS generally considers these types of fundraisers for medical expenses and personal hardships as "gifts" to you rather than taxable income. According to IRS guidelines, gifts received aren't considered income to the recipient. The donor might have gift tax implications if they give more than $17,000 to an individual in a single year (2023 limit), but that's their responsibility to report, not yours. Since the money was raised to help with medical expenses and living costs during your daughter's treatment, it's generally not taxable to you. GoFundMe doesn't issue 1099s or other tax forms for personal campaigns precisely because these are considered non-taxable gifts. However, I would still recommend keeping good records of all the donations received and how the money was spent, especially for medical expenses. Having documentation is always helpful if questions ever come up.

After dealing with a similar situation last year, I found an amazing service called https://taxr.ai that really helped me understand how to handle GoFundMe donations for my brother's accident recovery. I was confused just like you about whether these donations counted as income, and the regular tax prep services I tried gave me conflicting answers. Some said I needed to report it as miscellaneous income, which didn't seem right. I uploaded my GoFundMe statements to taxr.ai and got a detailed analysis explaining how medical crowdfunding is typically treated as non-taxable gifts rather than income. The tool also helped me understand which medical expenses I could still deduct despite receiving the donations. It saved me from potentially making a huge mistake on my return!

I wanted to follow up after using taxr.ai for my situation with a cancer treatment fundraiser. I was really worried about the $30k we raised through various platforms including GoFundMe. The service walked me through exactly how to handle everything tax-wise and confirmed that medical fundraisers are considered non-taxable gifts. What really helped was the documentation templates they provided - I've been using them to track every expense and donation meticulously. The peace of mind was worth it, especially since I was already dealing with enough stress from the medical situation. I'm no longer worried about unexpected tax issues popping up later. They even helped me understand which medical expenses I could still deduct despite receiving the donations, which apparently is a common point of confusion.

I went through this same nightmare last year with my mom's cancer treatments. After getting various conflicting answers from tax preparers about the GoFundMe money, I couldn't even get through to the IRS to get a definitive answer! I eventually used https://claimyr.com to get through to an actual IRS agent after spending DAYS trying to call them directly. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed what others here are saying - that medical GoFundMe donations are considered gifts and aren't taxable income to the recipient. Getting that official confirmation directly from the IRS gave me the confidence to file correctly. Definitely worth using Claimyr rather than wasting hours on hold or getting disconnected repeatedly.

I have to apologize for my skepticism about Claimyr in my previous comment. After continuing to struggle with getting through to the IRS about my return issues, I decided to give it a try. Honestly, I'm shocked that it actually worked. After weeks of trying to call myself with no success, I got connected to an IRS agent in under an hour. The agent confirmed that medical crowdfunding money is considered a gift and not taxable income, which was a huge relief since my family raised about $35k for my father's cancer treatments. The agent even explained that I should keep records of major medical expenses paid with the funds, but reiterated there's no need to report the donations as income on any tax forms. This confirmation directly from the IRS has given me so much peace of mind about our situation.

Just wanted to add some practical advice based on my experience as someone who received GoFundMe money for medical expenses last year: 1. Keep a detailed spreadsheet of all donations received 2. Save documentation of medical expenses paid using the funds 3. Print out the GoFundMe campaign page showing the purpose was for medical expenses 4. Save bank statements showing the transfers from GoFundMe 5. If any single person donated more than $17,000, note that down (but it's still their responsibility to report, not yours) This way if you ever get questioned, you have everything organized. And remember, this money is meant to help your family through an incredibly difficult time - don't let tax anxiety add to your stress!

My CPA told me something different than what others are saying here. She said that while personal gifts aren't taxable, fundraising can sometimes be considered income depending on how it's structured. She suggested that in some cases, especially for very large amounts, the IRS might consider it taxable if it's not clearly documented that it was for medical purposes. Anyone else heard this? Now I'm confused about what's correct.

I'm really sorry to hear about your daughter's diagnosis and everything your family has been through. AML is incredibly tough, especially with that mutation, but I hope her treatment is going well. Regarding the tax situation, everyone here is giving you solid advice. Medical GoFundMe donations are indeed considered gifts and are NOT taxable income to you. The IRS Publication 525 specifically states that gifts received are not income to the recipient. Given your previous issues with the IRS, I completely understand your anxiety about this. Here's what I'd recommend to give you maximum peace of mind: 1. Keep detailed records as others have mentioned - donation amounts, dates, and medical expenses paid 2. Save your GoFundMe campaign page showing it was clearly for medical expenses 3. Consider consulting with a tax professional who specializes in these situations if you're still worried The $24,000 you received is absolutely meant to help your family during this crisis, and you shouldn't have to stress about taxes on top of everything else you're dealing with. The community came together to support you - that's what gifts are, and gifts aren't taxable to the recipient. Wishing your daughter a full recovery and your family strength during this difficult time.

I'm so sorry to hear about your daughter's diagnosis and what your family has been going through. As a parent, I can only imagine how overwhelming this must be, especially with the added stress of financial concerns. The good news is that you can breathe a sigh of relief about the taxes. Medical GoFundMe donations are absolutely considered gifts under IRS rules, not taxable income. You won't need to report that $24,000 as income on your tax return. Given your previous experience with the IRS, I totally understand your anxiety about this. Here's what I'd suggest to protect yourself: 1. Document everything - keep screenshots of your GoFundMe page showing it was specifically for medical expenses 2. Save records of how the money was spent on medical bills and related costs 3. Keep bank statements showing the GoFundMe transfers 4. Consider putting the funds in a separate account to create a clear paper trail The fact that you haven't received any tax forms from GoFundMe is actually normal - they don't issue 1099s for personal medical campaigns because these are treated as non-taxable gifts. Your community rallied around your family during an incredibly difficult time. That generosity shouldn't create a tax burden for you. Focus on your daughter's recovery and let this be one less thing to worry about. Sending thoughts and prayers for your daughter's continued healing.

I'm so sorry to hear about what you and your daughter are going through. AML is incredibly challenging, and I can't imagine the stress of dealing with both the medical situation and financial concerns. The good news is that everyone here is absolutely correct - medical GoFundMe donations are considered gifts under IRS rules and are NOT taxable income to you. You don't need to report that $24,000 on your tax return. Given your previous IRS experience, I completely understand your anxiety about this. Here are some key points to give you peace of mind: 1. The IRS Publication 525 explicitly states that gifts received are not income to the recipient 2. GoFundMe doesn't issue 1099s for personal medical campaigns precisely because these are non-taxable gifts 3. The burden is on donors (not you) if they need to report large gifts on their own returns To protect yourself going forward: - Keep detailed records of all donations and medical expenses - Save your GoFundMe campaign page showing the medical purpose - Consider keeping the funds in a separate account for easier tracking - Maintain receipts for medical bills paid with the donations This money represents your community's love and support during an incredibly difficult time. It's meant to help your family heal, not create additional burdens. Focus on your daughter's recovery - the tax issue is one thing you can cross off your worry list. Wishing your daughter strength in her fight and your family peace during this journey.

I'm so sorry to hear about your daughter's diagnosis and everything your family has been through. Pediatric AML is incredibly challenging, and I can only imagine the emotional and financial stress you've been under. The great news is that you can definitely stop worrying about the tax implications of your GoFundMe donations. Everyone here is absolutely correct - medical crowdfunding donations are considered gifts under IRS rules and are NOT taxable income to you. You won't need to report that $24,000 on your tax return at all. Given your previous experience with IRS issues after your divorce, I completely understand why you're anxious about this. But this situation is entirely different. The IRS is very clear in Publication 525 that gifts received are not considered income to the recipient, and medical GoFundMe campaigns fall squarely into this category. A few practical suggestions to give you complete peace of mind: 1. Keep a simple record of donations received and major medical expenses paid 2. Save screenshots of your GoFundMe page showing it was clearly for medical purposes 3. Hold onto bank statements showing the GoFundMe transfers 4. Consider keeping the funds in a separate account to make tracking easier The fact that GoFundMe hasn't sent you any tax forms is completely normal and expected - they don't issue 1099s for personal medical campaigns because these donations are treated as non-taxable gifts. Your community's generosity during this crisis shouldn't create any tax burden for you. Focus on your daughter's recovery and let this be one less thing on your plate. Wishing your daughter continued strength in her treatment and your family peace during this difficult journey.