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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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Wanting to raise some money on Gofundme to use towards items

Customer Question

Wanting to raise some money on Gofundme to use towards items for homeless/homeless camps. socks, food, hygiene products etc. I am trying to find out if by running a gofundme as an individual who is not a non profit if this would be considered as income for me and if i would hjave to claim it or pay taxes on it
Submitted: 2 months ago.
Category: Tax
Expert:  emc011075 replied 2 months ago.

Hi. My name is ***** ***** I will be happy to help you.

If you go through Gofundme or any other fundraising website you will receive 1099Misc (self-employment income) and you would have to report it on your tax return otherwise you will get a notice from the IRS about unreported income. The problem is that as solo proprietor you cannot deduct charitable donations from your self-employment income, you will have to deduct it as itemized deduction and the deduction may be limited. Also, you will owe self-employment tax on the income, minus your expenses, other than the actual donations. If you report it as hobby income not subject to self-employment tax, you will still need to deduct the donations as itemized deduction but you will not owe self-employment tax.

One way or another, it is not a good idea to use your own social security number.