Contact UsWe have a family in our church that we have been helping with monetary gifts given by others to be given to the family in need. do we need to issue a 1099 or do they have to claim the money as income on their taxes? Thanks
TaxConnections Members... Answer This Question
Want To be One of Our Tax Experts? Register Here
Tax Professional Answers
John Stancil
The money is considered a gift, and therefore the church does not have any reporting responsibilities - no 1099 or other document. It is not taxable income to the recipients.
However, I would add that there is one major exception. If those receiving the gifts are employees of the church, it would be reported on their W-2 and would be taxable income. This would apply also if gift were given to a spouse or family member of the employee and would be treated as income to the employee.
Leave a Comment
510 weeks ago
However, I would add that there is one major exception. If those receiving the gifts are employees of the church, it would be reported on their W-2 and would be taxable income. This would apply also if gift were given to a spouse or family member of the employee and would be treated as income to the employee.