Received over $15k from GoFundMe fundraiser - How to handle the 1099 tax form?
My family recently held a GoFundMe campaign to cover my sister's unexpected medical expenses. The campaign was incredibly successful and raised just over $15,100 from about 250 wonderful people. My sister's college roommate organized it, and I was set up as the recipient of the funds. After GoFundMe took their platform fees, the total amount deposited into my bank account was approximately $14,700. The campaign is still accepting donations, but I'm concerned about the tax implications. I know GoFundMe will send a 1099 to the IRS, but I'm confused about which amount I'll be taxed on. Since the total raised ($15,150) is just slightly over the $15k threshold, will I only need to pay taxes on the $150 that exceeds the limit? Or will I be taxed on the entire $15,150? Or is it based on the $14,700 that actually hit my bank account after fees? Thanks in advance for any guidance on this. I want to make sure I'm handling everything correctly come tax time.
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Ethan Brown
This is a really good question about a difficult situation. I'm sorry about your sister's medical issues. For tax purposes, what matters is the amount that was actually distributed to you, which is the $14,700. The GoFundMe fees are taken out before the money reaches you, so you don't report those as part of your income. However, there's more good news - funds received for medical expenses or personal hardship are generally considered gifts by the IRS, not taxable income. Each donor can give up to $18,000 (for 2025) to any individual without triggering gift tax reporting. Since you mentioned 250 donors contributing $15,100 total, the average donation was about $60 per person, well below the gift tax threshold. You shouldn't need to report this money as income on your tax return at all. GoFundMe may issue a 1099-K if the amount exceeds certain thresholds, but you can explain on your tax return that these were non-taxable gifts for medical expenses.
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Yuki Yamamoto
•Wait, I'm confused. I thought GoFundMe campaigns were always taxable if they went over a certain amount? My cousin raised money for home repairs after a flood and got hit with a huge tax bill. Does it matter what the fundraiser is for?
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Ethan Brown
•The purpose of the fundraiser absolutely matters for tax treatment. Gifts received for personal needs like medical expenses, disaster recovery, or personal hardship are generally not considered taxable income to the recipient. Your cousin's situation might have been different if the fundraiser was categorized differently or if there was some exchange of goods/services involved. It's also possible they received bad tax advice. Many tax preparers incorrectly report GoFundMe proceeds as income simply because a 1099-K was issued, but the IRS guidance is clear that personal gifts are not taxable to the recipient regardless of whether a form is generated.
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Carmen Ortiz
I went through something similar last year with a medical fundraiser for my dad, and I was totally stressed about the tax situation until I found taxr.ai (https://taxr.ai). They have this really cool feature where you can upload your 1099 forms and get immediate clarity on what's taxable. For my situation, they explained that personal medical fundraisers are considered gifts and confirmed I didn't need to report the money as income even though I got a 1099-K. They also helped me draft a simple explanation to include with my tax return just in case the IRS had questions. The system even showed me exactly where in the tax code this is covered so I felt super confident. Might be worth checking out if you're worried about handling this correctly!
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Andre Rousseau
•Does taxr.ai handle other tax questions too? I've got this whole mess with some crypto transactions and a side gig I started last year. Been putting off figuring it out because it seems complicated.
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Zoe Papadakis
•How does this actually work though? I'm kinda sketched out by tax services that aren't like the big names. Did you have to give them access to your bank accounts or anything?
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Carmen Ortiz
•Yes, they definitely handle crypto and side gig questions too! I was actually surprised by how comprehensive it is. My brother used it for his freelance writing income and said it was super helpful for figuring out deductions he didn't know about. I totally get the skepticism about new tax services. You don't need to connect any bank accounts - you just upload the tax documents you already have (like 1099s, W-2s, etc.) and the system analyzes them. You can even just ask questions without uploading anything if you prefer. It's more of an AI-powered tax advisor than a full-service tax prep tool.
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Zoe Papadakis
Just wanted to update that I tried taxr.ai after my questions above. It was actually really straightforward! I uploaded the 1099-K I got from my own GoFundMe campaign and explained it was for funeral expenses. The system immediately flagged it as likely non-taxable gifts and showed me exactly how to handle it on my return. What I found most helpful was the explanation of why payment processors send 1099-Ks even for non-taxable transactions - basically they're required to report the payments but that doesn't automatically make them taxable income. Saved me a ton of stress and potentially from paying taxes I didn't actually owe. Definitely less scary than I thought it would be!
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Jamal Carter
When I had issues sorting out a similar situation with a fundraiser, I couldn't get a straight answer from the IRS website and spent DAYS trying to get through to a real person at the IRS. Finally found Claimyr (https://claimyr.com) and was honestly shocked that it actually worked. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c They got me connected to an actual IRS agent in about 15 minutes when I had been trying for literally weeks on my own. The agent confirmed that medical fundraisers are considered non-taxable gifts and explained exactly how to note this on my return since I had received a 1099-K. Saved me so much headache and uncertainty!
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AstroAdventurer
•How much does Claimyr cost? Sounds too good to be true tbh. The IRS phone lines are notoriously impossible to get through.
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Mei Liu
•I've tried services like this before and they never work. The IRS is basically unreachable these days. Are you sure you're not just advertising for them?
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Jamal Carter
•They do charge a fee for the service, but I don't remember the exact amount - you can check their website for current pricing. For me, it was worth every penny considering I had already wasted hours of my life trying to get through on my own and was facing potential tax issues if I filed incorrectly. I totally understand the skepticism - I felt the same way! I'm just a regular person who was desperate for tax help, not affiliated with them at all. What convinced me was their money-back guarantee if they don't get you through. The service works by using technology to navigate the IRS phone system and hold your place in line, then calls you when an agent is about to be connected.
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Mei Liu
Well I need to eat my words from my comment above. After being super skeptical, I actually tried Claimyr out of desperation because I needed to sort out an issue with a missing refund from last year plus get clarity on a GoFundMe situation similar to yours. It actually worked! Got through to an IRS agent in about 20 minutes after trying for WEEKS on my own. The agent confirmed exactly what others have said here - funds received from GoFundMe for medical or personal hardship are considered non-taxable gifts. They also helped me trace my missing refund which is now being reissued. Sometimes it's worth admitting when you're wrong - this service saved me a ton of stress and potentially from making mistakes on my return.
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Liam O'Sullivan
I've been a tax preparer for 7 years and see this situation frequently. Here's what you need to know: 1. GoFundMe will likely issue a 1099-K if the amount exceeds $15,000 in 2025 2. However, the IRS considers these funds as gifts to you, not income 3. You should keep documentation showing the purpose of the fundraiser (medical expenses) 4. If you use tax software, there's usually a section to explain why a 1099-K amount isn't included in your taxable income Also worth noting - if the platform issued the 1099-K to the organizer rather than to you, they might need this same info for their tax filing.
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CosmicCrusader
•Thank you for the clear explanation! If I receive a 1099-K, is there a specific form I need to file with my taxes to explain that this was gift money for medical expenses? Or do I just not include it as income when I file?
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Liam O'Sullivan
•There's no specific form you need to file to explain gift money. You simply don't include the amount as income on your tax return. If you're using tax software, when you enter the 1099-K information, there will typically be a section asking about the type of income, and you can select "not income" or sometimes "personal gift" depending on the software. Some programs also have a text field where you can provide a brief explanation like "GoFundMe medical expense gifts from multiple donors." If filing on paper, you can include a brief statement explaining the funds were gifts for medical expenses.
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Amara Chukwu
Quick question - does anyone know if this same rule applies to fundraisers for starting a small business? I received about $17k from a GoFundMe to launch my food truck last year and I'm freaking out about taxes!
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Ethan Brown
•Business fundraisers are treated differently from personal medical or hardship campaigns. Funds raised to start a business are generally considered taxable income since they're for a commercial purpose rather than a personal gift. You should probably report the $17k as income on your Schedule C if you're a sole proprietor. The good news is you can offset this with legitimate business startup expenses. I'd recommend talking to a tax professional who specializes in small businesses to make sure you're maximizing your deductions.
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