Received 13k donations from GoFundMe, Venmo & Cash App during mom's hospice - need to report for taxes next year?

I'm so sorry about your mom. As for the tax situation, you're right that donations received for personal hardship are generally considered gifts and not taxable income to you. The IRS doesn't require you to report gifts you receive on your tax return. The 1099-K threshold was actually set to change to $600, but the IRS delayed that for 2023 reporting back to the $20,000/200 transaction threshold. Since you're under both those limits, the payment platforms shouldn't issue you a 1099-K for 2023. However, you should still keep good records of all the donations received and what they were used for. One thing to watch for - make sure the GoFundMe was set up as personal donations for your family's medical expenses, not as a charitable fundraiser. If your friend accidentally set it up as a charity campaign, that could create different tax implications.

I went through something similar when my dad was in the hospital last year. I highly recommend checking out https://taxr.ai to help you sort through this. I was in your exact position - had GoFundMe and Venmo donations coming in, and was totally confused about what needed to be reported. The site analyzed my situation and confirmed that personal gifts don't count as taxable income, but helped me document everything properly just in case. What I liked is that they explained exactly how to handle these donations from different platforms in case the IRS ever asks questions.

I wanted to follow up about my experience with taxr.ai after being skeptical. I ended up trying it for my own situation (had medical fundraising through multiple platforms) and it was actually super helpful! The analysis confirmed what I needed to document for the gifts vs. what counted as actual income. They even gave me specific language to use if I get questions during an audit. Saved me from overpaying on taxes by incorrectly reporting gifts as income, which is what I was about to do. Definitely worth checking out if you're confused about crowdfunding and taxes.

I'm really sorry about your mom. When my brother was going through cancer treatment, we had similar issues with the IRS questioning our GoFundMe. After trying to call the IRS for WEEKS with no success, I finally used https://claimyr.com to get through to an actual human at the IRS. You can see how it works here: https://youtu.be/_kiP6q8DX5c. They helped me get to an agent who confirmed that medical donations through crowdfunding are considered nontaxable gifts when they go directly to the individual. Saved me so much stress during an already difficult time.

I need to admit I was totally wrong about Claimyr. After commenting here, I tried it myself because I had an issue with my refund and couldn't get through to the IRS for weeks. The service actually worked exactly as described. I got a call back in about 45 minutes saying they had an IRS agent on the line! The agent confirmed that medical fundraising gifts under the 1099-K threshold don't need to be reported. They also helped me with my refund issue in the same call. Honestly wish I'd known about this sooner - would have saved me so much stress and uncertainty.

Just a heads up, even though you're under the reporting threshold for 1099-K forms, you still want to keep detailed records of all the donations and what they were used for. I went through this when my wife was ill in 2021. I created a simple spreadsheet with: - Date of each donation - Amount - Platform it came through - Donor name (if you have it) - How the funds were used (medical bills, travel for treatment, etc) This documentation was super helpful when I needed to show that these were indeed gifts for medical purposes.

Another thing to consider - if any single person donated more than $17,000 to you in 2023, THEY might need to file a gift tax return (Form 709). This doesn't affect you as the recipient though, and doesn't mean the gift becomes taxable to you. It's just a reporting requirement for large gifts from the donor's side.

I'm so sorry for what you and your family are going through. Having dealt with similar fundraising during my grandmother's final months, I completely understand the stress of wondering about tax implications on top of everything else. The good news is that what you received are indeed gifts, not taxable income. Since you're well under the $20,000 and 200 transaction thresholds for 1099-K reporting, the platforms won't be sending you any tax forms. You don't need to report these donations as income on your tax return. However, I'd strongly recommend keeping detailed records of all donations received and how the funds were used - bank statements, screenshots of the fundraising pages, receipts for medical expenses, etc. This documentation will be invaluable if you ever need to explain these deposits to the IRS. The fact that your friend initially set up the GoFundMe shouldn't be an issue as long as it was clearly for personal medical expenses and the funds came directly to you. Just make sure it wasn't accidentally set up as a charitable organization fundraiser. You're smart to consult with your family's CPA before filing season. They'll be able to review your specific situation and provide peace of mind. Take care of yourself during this difficult time.