Federal Tax, Tax

Income Raised by Crowdfunding May Be Taxable

Using websites such as GoFundMe or Kickstarter is an easy way to raise money over the internet from a large group of people. Often referred to as “crowdfunding,” it may be used to fund business ideas, help families pay medical bills, or raise money for charity. Bear in mind that the income raised by crowdfunding may be taxable. The IRS recently published a fact sheet that addresses whether the money raised is taxable and details reporting requirements. It explains that the money raised in a crowdfunding campaign may not have to be included in the organizer’s individual gross income if all the money is distributed to the campaign’s beneficiary. Read the fact sheet. For questions, reach out to Cg Tax, Audit & Advisory. © 2022