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Do I pay taxes on donations to assist in housing for 100 days and prescriptions for up to 5 years if I set up a Facebook page as suggested?

On December 3 I am undergoing a bone marrow transplant I have MDS I was diagnosed 4/13 we have and on Social Security Disability since 2/14 and have depleted my savings waiting for the doner and multitude of medical issues Moffit Cancer has suggested I do a fund raiser thru social to assist with the housing for apx. 100 days as I live outside the safe zone I must be able to get to Moffitt within 20 minutes my insurance states I must live 100 miles away to for them to cover it I am out of the safe zone but not far enough away for the insurance to cover too I will be taking 40 drugs when I come out the co pay is $400 per month a big chunk out of my $1226 a month disability check
Gift-Tax Exemption Donations
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Tax Professional Answers

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Devon McCarthy FCCA, EA
Based on the information presented in your question, you do not appear to have a taxable situation. The first step would be to determine whether the amounts received are classified as income or gifts. The IRS will normally treat as gifts any amounts received for which the donor does not receive full consideration in the form of money or money’s worth. Some gifts are taxable but payment of medical expenses is not taxable. Taxable gifts also have an annual exclusion amount of up to $14,000 (Tax on gifts is paid by the donor). Your complete situation would have to be examined to determine whether you will be taxed, but if your total income is as described in your question then it looks like you will not have a taxable situation unless the donations received fall outside the guidelines I have mentioned in my answer. Please let me know if you need additional information or further clarification.
Leave a Comment 361 weeks ago

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John Stancil
The donations that you receive are not taxable income to you, as long as you are not providing any goods or services in return. Others may do things such as host a spaghetti dinner on a donation basis with the proceeds going to you. However, you should be aware that the donors will not receive a charitable contribution deduction for any gifts or contributions, as the funds are going to an individual, and not to a tax-exempt organization and are specifically earmarked for your benefit.

If you are able to partner with an IRS tax-exempt organization, they would be able to set up a fund for you and have individuals make contributions to the fund. The donors can "suggest" that the funds be used for your benefit, but they cannot require that the funds go to you. That is known as exercising undue control and disqualifies it as a deductible contribution. For example, your church may set up a fund to help your financial needs and tell the congregation the purpose of the fund. They will get a tax deduction for that contribution. Hope this helps. Let me know if you have any follow up questions.
Leave a Comment 361 weeks ago

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Bill Robinson, CPA
The short answer is no you will not owe taxes on these donations. Because there is no implied exchange of services the nature of the payments from individuals solicited on social media are considered gifts and not income. I would suggest however that you keep a good detailed record of the gifts so that if the IRS knocks you can show there was an intent for gifts and no personal services required in exchange. Also the gifts will not be tax deductible for the donors under the rules related to contributions so do not state they are unless you want to get into trouble with the IRS on that point. Finally, I just say to you that hope reigns through God's word. I don't know if you have any level of faith for the redemptive work of Christ. I can only speak to you through experience. There is a reality for healing in God's word and what Jesus accomplished on the cross. Fear can be your enemy right now but do not dwell on fear. I have been in a similar situation and had family with hopeless causes the doctors said were terminal. Pray and leave it to God. Isa. 53:5 Romans 8:1,2 Blessings and prayers sent to you and your family
Leave a Comment 361 weeks ago


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