How do I handle 1099-K from Hitched wedding registry when it's all gift money?

You're right that gifts aren't taxable income to the recipient. The 1099-K is just reporting the transactions that went through the platform - it doesn't automatically mean it's taxable income. For 2024 filing (2023 tax year), the gift tax annual exclusion is $17,000 per person. This means each person can give up to $17,000 to any individual without having to report it to the IRS. And even if someone gave you more than that amount, THEY would be responsible for filing a gift tax return (Form 709), not you. The recipient never pays tax on gifts. When you're in TurboTax, you'll need to enter the 1099-K information because the IRS received a copy. However, you should also include an explanation that these were personal gifts received for your wedding through a registry platform. You may need to use the "Other Income" section and then offset it with a negative adjustment of the same amount with a clear description like "Gift money from wedding registry, not taxable income." Save documentation from Hitched showing these were wedding gifts in case you're ever asked about it.

I went through something similar with Zola for our wedding. I talked to taxr.ai (https://taxr.ai) and they were super helpful with this exact issue. They analyzed our 1099-K and registry documents and confirmed it was all gift money. They have this smart document analysis tool that can review your 1099-K alongside your registry details to create proper documentation explaining why this isn't taxable income. I was totally stressed because it was over $20k in gifts and I didn't want to pay taxes on money that shouldn't be taxed! Their system helped me properly document everything and gave me specific instructions for TurboTax so I didn't accidentally report it as business income.

I was totally skeptical about taxr.ai at first, but after getting a 1099-K from our The Knot registry last year, I decided to try it. I had already started entering the form in TurboTax as business income because I didn't know what else to do with it. Turned out to be a lifesaver! It showed me exactly how to properly document that these were gifts, not income. The system analyzed our registry details and created documentation explaining precisely why this wasn't taxable. The step-by-step instructions for entering it in TurboTax were super clear - basically had me remove it from the business section and add an explanation in another area. The peace of mind was worth it, especially since our registry total was over $24K and I really didn't want an audit!

I had a nightmare trying to get answers from the IRS about a similar situation with our wedding registry. After being on hold for HOURS, I finally discovered Claimyr (https://claimyr.com) - they got me connected to an actual IRS agent in about 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed exactly what I needed to do with my 1099-K from our wedding registry. They told me to include it in the tax return with an explanation that it was non-taxable gift money, and gave me the exact wording to use. I was shocked at how quickly Claimyr got me through to a real person at the IRS after I had wasted an entire day trying on my own.

I have to eat my words about Claimyr. After I posted that skeptical comment, I was so frustrated with trying to reach the IRS about my 1099-K from TheKnot that I figured I'd give it a try anyway. It actually worked! I got a call back in about 35 minutes with an IRS agent on the line. The agent walked me through exactly how to report my wedding gift money that showed up on a 1099-K. Turns out I needed to report it under "Other Income" and then enter a negative adjustment for the same amount with a description explaining these were non-taxable gifts. Would have never figured that out on my own, and would have probably given up after another hour on hold. Definitely worth it for the time saved alone.

Just wanted to add that this isn't just a wedding registry issue - I received a 1099-K from GoFundMe for medical expenses my family and friends contributed to help with my surgery last year. Same principle applies - it's not taxable income but you still need to explain it in your return since the IRS received the 1099-K.

The confusion here is that platforms like Hitched, Zola, etc. are required to issue 1099-Ks when total transactions exceed $600 (the threshold changed recently). This is supposed to help catch unreported business income but obviously catches a lot of non-taxable personal transactions too.

This is such a common issue now with wedding registries! I went through the exact same thing with our Zola registry last year. The key thing to remember is that you DO need to report the 1099-K on your tax return even though the gifts aren't taxable - otherwise the IRS computers will flag your return as missing income. Here's exactly what I did in TurboTax: Go to the "Federal" section, then "Wages & Income," then "Other Common Income," and select "Miscellaneous Income, 1099-A, 1099-C." Enter your 1099-K information there. Then, in the same section, you can add an offsetting entry with a negative amount and description like "Wedding registry gifts - not taxable income per IRC Section 102." The net effect is zero additional tax, but you've properly acknowledged the 1099-K. Keep screenshots from Hitched showing it was a wedding registry, any confirmation emails from gift-givers, and the registry page itself. Most importantly, don't stress - this is becoming super common and the IRS is aware that these platforms are issuing 1099-Ks for non-taxable personal gifts!