Are GoFundMe or Crowdfunding Donations Taxable?
Sometimes yes, sometimes no. The IRS says crowdfunding distributions may be taxable depending on the facts and circumstances. Money given out of detached and disinterested generosity, with the contributor receiving or expecting nothing in return, may qualify as a gift and generally is not included in the recipient’s gross income.
But not every crowdfunding payment is a gift. Money tied to goods, services, business activity, employment, rewards or other consideration can have different tax consequences.
Does a 1099-K Mean the Money Is Taxable?
No. The IRS specifically says receiving a Form 1099-K does not automatically mean the amount reported is taxable. The form reports payment activity; taxability still depends on what the payments actually represented.
What Is the 1099-K Threshold in 2026?
The IRS’s current Form 1099-K guidance says the law has returned the third-party settlement organization reporting threshold to the pre-ARPA standard: a TPSO generally is not required to file Form 1099-K unless reportable payment transactions to a payee exceed $20,000 and exceed 200 transactions.
There is an important crowdfunding wrinkle: the IRS says a crowdfunding website or payment processor generally is not required to issue Form 1099-K for payments that are not made in exchange for goods or services. Platform practices and individual circumstances can still vary.
Examples: Gift vs. Potentially Taxable Crowdfunding
| Situation | General Federal Tax Direction |
|---|---|
| Friends and strangers contribute to help with a medical emergency and receive nothing in return | May qualify as gifts and may not be taxable to the recipient |
| A business raises money and contributors receive products or services | May be business income; reporting rules can apply |
| An employer contributes to a campaign for an employee | IRS guidance says employer contributions generally are included in the employee’s gross income |
| An organizer raises money for someone else and passes it to that beneficiary | May not be income to the organizer if the organizer properly distributes the funds to the intended person |
Keep Records Even If You Believe the Money Is a Gift
The IRS recommends keeping complete and accurate records about the campaign and how the money was distributed. Save the campaign description, donor records available to you, platform statements, transfer records, receipts and documentation showing the purpose of the fundraiser.
What If You Receive a 1099-K for Non-Taxable Crowdfunding?
Do not ignore it. The IRS has published reporting guidance for non-taxable amounts shown on Form 1099-K and may contact a taxpayer if a reported amount is not addressed on a return. Because the correct treatment depends on the facts, this is a good point to involve a tax professional.
Taxes Are Separate From Platform Fees
Transaction fees and tax treatment are two different issues. Before launching, understand both. See our GoFundMe fee calculator and our GoFundMe vs. Kickstarter comparison.
Planning a Crowdfunding Campaign?
Know the fees, document the purpose, and keep clean records from day one.
Start a Campaign Read the Fee Guide