GoFundMe campaign exceeded $15k threshold - how do I handle the 1099 tax reporting?

You've got a good question here. For tax purposes, the 1099-K will report the gross amount collected ($15,825 in your case) before any fees were deducted. However, the good news is that funds received through GoFundMe for funerals and memorials are generally considered gifts, not taxable income. The $15,000 threshold is just for reporting purposes - it requires GoFundMe to issue a 1099-K, but it doesn't automatically make the money taxable. Gifts aren't considered income to the recipient, though technically any individual giving more than $17,000 to one person should file a gift tax return (but that's on the donor, not your aunt). When your aunt files her taxes, she shouldn't need to report this as income. If the 1099-K shows up in tax software, she'll need to explain that these were non-taxable gifts for funeral expenses. Keeping documentation of how the funds were used for funeral and memorial expenses is always a good idea.

I went through something similar last year when my sister had a medical emergency. We raised about $16k on GoFundMe and I was totally confused about the tax situation until I found https://taxr.ai which helped me figure out exactly what to do with the 1099-K. I uploaded the 1099-K form GoFundMe sent me and they analyzed it right away. Their system confirmed what the first commenter said - that these contributions count as gifts and aren't taxable income. But they also gave me step-by-step instructions for how to report it correctly on my tax return so it wouldn't trigger any red flags with the IRS. Super helpful since I was worried about doing it wrong. They even gave me specific language to use to explain the non-taxable nature of the funds if I ever got questioned about it. Really gave me peace of mind during an already stressful time.

Just wanted to update - I ended up using taxr.ai after my initial skepticism and it was actually super helpful! I uploaded our GoFundMe 1099-K and they walked me through exactly how to handle it on my tax return. The most valuable part was they showed me how to properly document that these were gifts for funeral expenses so I don't have to pay income tax on the money. They even generated a detailed letter I can keep with my tax records explaining why the funds aren't taxable income in case I ever get audited. Definitely worth it for the peace of mind, especially since I was so confused about whether the $15,500 we raised would count as income. Turns out it doesn't! Thanks to the person who recommended this.

When I lost my mom last year, we had a similar situation with a memorial fund that went over $15k. The worst part was trying to get answers from the IRS directly - I spent HOURS on hold and never got through. Eventually I found https://claimyr.com and used their service to get a callback from the IRS. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that the GoFundMe money wasn't taxable income since it was gifts for funeral expenses, but I needed to report it correctly. Saved me so much time and stress not having to sit on hold for hours. The IRS is impossible to reach these days without something like this.

I take back what I said earlier! After waiting on hold with the IRS for 2.5 hours yesterday and then getting disconnected, I gave Claimyr a shot out of desperation. Within 45 minutes, I got a call back from an actual IRS agent who answered all my questions about my brother's memorial fund and the 1099-K reporting. The agent confirmed that contributions for funeral expenses are considered gifts and not taxable income to the recipient. She explained exactly how to note this on my return since a 1099-K was issued. Seriously, this saved me so much time and frustration. Worth every penny not to deal with the IRS hold music for hours!

Just to add another perspective - my family raised about $18k for my dad's medical expenses last year through GoFundMe. We got the 1099-K and freaked out thinking we'd owe taxes, but our tax preparer said it's not taxable because: 1) It's considered gifts from multiple people 2) The gift tax is the responsibility of the giver, not the receiver 3) Each donation was under the annual gift tax exclusion amount She just had us keep records showing that the money was used for the intended purpose (medical bills in our case, funeral expenses in yours). We didn't pay a dime in taxes on it.

Something to keep in mind - while the RECIPIENT (your aunt) doesn't owe taxes on gifts, technically any single DONOR who gave more than $17,000 would need to file a gift tax return (Form 709). But even then, they probably won't owe any actual tax unless they've given away millions in their lifetime. Most GoFundMe donations are small amounts from lots of people, so this rarely becomes an issue. Just thought I'd mention it in case any individual donors gave large amounts.

I'm going through something similar right now with a GoFundMe for my neighbor's house fire. We've raised about $14,800 so far and I was worried about hitting that $15k threshold. Reading through all these responses has been incredibly helpful - it sounds like even if we do go over, the funds would still be considered non-taxable gifts as long as we keep good documentation of how the money is being used for recovery expenses. One thing I'm curious about - if the GoFundMe campaign stays open after reaching the goal (like yours did), and more donations come in later, does that affect the tax situation at all? Or is it just based on what's reported on the 1099-K for the tax year? Also, thank you to everyone who shared their experiences and resources. It's comforting to know there are ways to get proper guidance when dealing with these situations during already difficult times.

This is such an important topic that more people need to understand. I work as a volunteer financial counselor and see this confusion come up frequently after tragedies in our community. One additional point worth mentioning - make sure your aunt keeps the GoFundMe campaign page documentation (screenshots, donor lists, etc.) along with all the funeral receipts. If there's ever any question from the IRS about the nature of these funds, having the campaign page that clearly states it was for memorial/funeral expenses provides excellent supporting evidence. Also, since you mentioned the campaign is still accepting donations, be aware that GoFundMe will issue separate 1099-K forms for each tax year if donations continue into 2026. Each year's donations are treated independently for tax purposes. Your aunt is fortunate to have someone looking out for her during this difficult time. The community support you've received is truly heartwarming, and it's wonderful that these generous gifts won't create an additional tax burden during an already challenging period.

I want to echo what others have said about keeping thorough documentation - this is so important! When my church organized a GoFundMe for a family whose home burned down, we raised about $22k and I was initially panicked about the tax implications. What I learned is that beyond just keeping receipts, it's helpful to create a simple spreadsheet tracking how the funds were used. We documented every expense: temporary housing, clothing replacements, school supplies for the kids, etc. This made it crystal clear that every dollar went toward legitimate recovery needs. The IRS agent I eventually spoke with (after using one of those callback services mentioned earlier) said this kind of organized documentation makes their job much easier if they ever need to review the case. She specifically mentioned that having the GoFundMe page description saved along with a summary of expenses creates a complete picture of the charitable nature of the donations. For funeral expenses specifically, don't forget that "associated costs" can include things like flowers, catering for the reception, travel for out-of-state family members, and even grief counseling. The key is that the expenses should be reasonable and directly related to the memorial/funeral. Your aunt is lucky to have someone advocating for her during this difficult time. The generosity of your community is beautiful, and it's wonderful that these gifts can provide comfort without creating additional financial stress.

I'm so sorry for your loss, Aisha. Losing a family member unexpectedly is devastating, and it's heartwarming to see how your community rallied around your family during this difficult time. The advice you've received here is spot-on. Since the GoFundMe was specifically for memorial/funeral expenses, the $15,825 raised would be considered gifts to your aunt and not taxable income. The 1099-K will report the gross amount before fees, but that's just for IRS tracking purposes - it doesn't make the funds taxable. A few additional points that might help: - Even though you're over the $15k reporting threshold, this doesn't change the gift status of the donations - Your aunt should report the 1099-K on her tax return but classify it as non-taxable gifts - Keep the GoFundMe campaign page saved/printed as documentation showing the charitable purpose - Save all funeral-related receipts, including any reasonable associated costs The resources others have mentioned for getting IRS guidance or tax help sound valuable if you need additional confirmation directly from the IRS or professional assistance with filing. Your cousin was clearly loved by many people, and this generous support from 270 donors is a beautiful testament to the impact they had on your community. Take care of yourself and your aunt during this difficult time.

I'm so sorry for your family's loss, Aisha. Reading through this thread has been incredibly educational - I had no idea about the nuances of GoFundMe tax reporting until now. What strikes me most is how this community came together to help clarify something that could have caused unnecessary stress during an already difficult time. The practical advice about documentation, the resources for getting IRS guidance, and especially Mohamed's update about organizing everything in a spreadsheet - it's all so valuable for anyone who might face a similar situation. I'm bookmarking this entire discussion because, unfortunately, unexpected losses happen and many of us may need to organize or contribute to memorial fundraisers in the future. It's comforting to know that when communities come together to support grieving families, those generous gifts won't create additional tax burdens. Your cousin clearly had a tremendous impact on many people, and the outpouring of support from 270 donors is a beautiful reflection of that. Thank you for asking this question and sharing the journey - it's going to help so many people who find themselves in similar situations.

I just wanted to add my voice to thank everyone who contributed to this discussion. As someone who works in nonprofit administration, I see families struggle with these exact questions regularly, and this thread has become an invaluable resource that I'll be sharing with others. The key takeaways are so clear now: memorial fundraisers remain gifts regardless of the 1099-K reporting threshold, proper documentation is essential (especially the campaign page screenshots and expense tracking), and there are legitimate resources available to get direct IRS guidance when needed. Aisha, I'm deeply sorry for your family's loss. The fact that 270 people came together to support your aunt speaks volumes about the kind of person your cousin was. It's beautiful that this generous community support won't create any tax complications - that's exactly how it should be when people are grieving and need help with funeral expenses. This discussion perfectly illustrates why communities like this are so valuable. Complex tax situations become manageable when people share their real experiences and practical solutions. Thank you all for creating such a comprehensive guide that will undoubtedly help many other families facing similar circumstances in the future.

I'm so deeply sorry for your family's loss, Aisha. Losing someone unexpectedly is incredibly difficult, and it's truly heartwarming to see how your community rallied together to support your aunt during this time. This thread has been absolutely invaluable - I've learned so much about GoFundMe tax implications that I never knew before. The consistent message from everyone with experience is reassuring: memorial fundraisers like yours are considered gifts, not taxable income, regardless of hitting the $15k 1099-K reporting threshold. What I find most helpful is how this discussion evolved beyond just answering the tax question to providing a complete roadmap for proper documentation. Mohamed's update about organizing everything in a spreadsheet really shows how all the advice comes together into actionable steps. The idea of keeping campaign page screenshots alongside expense receipts creates such a clear paper trail showing the charitable purpose. As someone who might need to organize something similar in the future (unfortunately, we all face unexpected losses), I'm bookmarking this entire conversation. The resources people shared for getting direct IRS guidance and tax help seem particularly valuable for anyone feeling overwhelmed by the technical aspects. Your cousin clearly touched many lives - 270 donors is a beautiful testament to their impact. Thank you for asking this question and sharing your journey. It's going to help countless families navigate similar situations while they're grieving.