Go Fund Me Accounts

[joho]

Does anyone know how much interest the website "Go Fund Me" collects out of the contributions to the individual?
How does that factor into an individual's income tax? Is that considered earned income? Just curious how this money is accounted for......

 

[Matt J]

About 2.5% and you get a 1099.

 

[Teresa]

So it's a contribution but you have to pay taxes for it?

 

[jodiFL]

GOFUNDME actually takes about 10% while there are others out there that only take the processing fees for credit cards, paypal etc. youcaring.com and giving grid.com are a couple..

 

[Matt J]

Teresa it's still income and you have to file for any amount over $600.

 

[PoppaJ]

Take the money and run. The cash is a gift and the giver can't take a tax deduction because Go Fund Me isn't a recognized nonprofit or charity except for certain Go Fund Me Certified Charities.

 

[jkmason]

If you are using the money for medical care, your tax on the donation may be partially offset by taking the medical care deduction on your schedule A.