GoFundMe donations are usually not taxable to you as the recipient, but the IRS does tax some fundraisers

Whether you owe tax on money raised through GoFundMe depends on what the money is for. If you're raising funds for a personal hardship — medical bills, disaster recovery, living expenses after job loss — the IRS generally does not treat those donations as taxable income. But if you're raising money for a business, a service you provide, or anything that looks like payment for work or goods, the IRS will tax it as ordinary income.

The key distinction is whether the money is a gift (not taxable) or payment for something (taxable). The IRS does not care what you call it on the fundraiser page. It cares what the money actually is. A donation to cover your rent after you lost your job is a gift. Money raised by a musician for an album they're selling is income. Money raised by a small business owner to cover startup costs is business income.

GoFundMe itself does not report donations to the IRS on your behalf in most cases. That means the IRS won't automatically know about the money. But that does not mean you should ignore it. If you receive more than $20,000 in a single GoFundMe campaign and the campaign receives more than 200 payments, GoFundMe will send you a Form 1099-K. If you receive a 1099-K, you must report it to the IRS, whether or not you think the money is taxable.

Key Takeaways

  • Personal hardship fundraisers (medical, disaster, job loss) are typically not taxable because they are gifts, not income.
  • Fundraisers for a business, product, service, or anything you're selling are taxable as ordinary income.
  • GoFundMe sends a Form 1099-K to the IRS if you receive over $20,000 and more than 200 payments, and you must report it even if you dispute the tax treatment.
  • The IRS looks at what the money actually is, not what the fundraiser description says, so mischaracterizing a business fundraiser as personal will not protect you from tax.

How the IRS decides whether a GoFundMe is taxable

The IRS has a specific definition of a gift: money given with no expectation of return or benefit to the giver. If someone donates to your medical fundraiser, they are not expecting you to do anything for them in return. That is a gift. If someone donates to your fundraiser because you promised to make them a piece of art, perform a service, or give them a product, that is payment, not a gift.

The IRS also looks at whether you are in the business of what you're fundraising for. If you're a photographer raising money for a new camera to use in your photography business, that is business income. If you're a person who lost your job and your friends donated money to help you buy groceries, that is a gift. The line is not always obvious, which is why many people in gray areas end up paying tax they might not have owed, or skipping tax they should have paid.

Fundraisers for medical expenses, funeral costs, disaster recovery, or personal hardship are almost always treated as gifts by the IRS. Fundraisers for business startup costs, inventory, equipment for a business you run, or anything tied to self-employment income are almost always taxable. Fundraisers for education, creative projects, or causes fall somewhere in between and depend on the specific facts.

When GoFundMe reports you to the IRS

GoFundMe does not report small fundraisers to the IRS at all. The platform only sends a Form 1099-K when two things happen at the same time: you receive more than $20,000 in a single campaign, and that campaign has more than 200 separate payments. If your campaign hits $20,000 but only has 150 donors, GoFundMe will not send a 1099-K. If your campaign has 300 donors but only raises $18,000, GoFundMe will not send a 1099-K.

When GoFundMe does send a 1099-K, it goes to both you and the IRS. You will receive it by January 31 of the year after the fundraiser closes. The form reports the total amount raised, and the IRS will expect to see that amount reported on your tax return. If you do not report it, the IRS will notice the mismatch between what GoFundMe reported and what you filed.

If you receive a 1099-K for a fundraiser you believe was a gift (such as a personal hardship campaign), you still have to report it to the IRS. You can then explain on your tax return why the money should not be taxed. This is done by filing Form 1040 and attaching a statement explaining that the funds were gifts. The burden is on you to prove it was a gift, not on the IRS to prove it was income.

Reporting GoFundMe income on your tax return

If your GoFundMe is clearly taxable — you're raising money for a business, a product, or a service — you report it as self-employment income on Schedule C (if you're a sole proprietor) or on your business tax return. You will owe income tax on the amount, and you may also owe self-employment tax (Social Security and Medicare tax) if the amount is over $400 for the year.

If your GoFundMe is a personal hardship fundraiser and you receive a 1099-K, you report it on your tax return with an explanation. On Form 1040, you can attach a statement saying the funds were gifts for personal hardship and should not be included in taxable income. Keep records of the fundraiser page, any communications with donors, and documentation of the hardship (medical bills, eviction notice, disaster declaration) to support your claim.

If you do not receive a 1099-K because your fundraiser was under the reporting threshold, you are not required to report it to the IRS unless it is taxable income. However, if the IRS ever audits you and finds evidence of the fundraiser, you will need to explain why you did not report it. The safest approach is to report all fundraisers, note which ones you believe are gifts, and let the IRS make the final call if they disagree.

GoFundMe fundraisers that are almost always taxable

Fundraisers for business purposes are taxable. This includes raising money to start a business, buy equipment for a business you run, fund inventory, or cover business operating costs. It also includes fundraisers by freelancers, contractors, or self-employed people to cover business expenses. If you're a plumber raising money to buy tools for your plumbing business, that is taxable income.

Fundraisers where donors receive something in return are taxable. This includes pre-sales (raising money by selling a product or service before you deliver it), reward-based crowdfunding, or any arrangement where the donor expects to get something back. If you're an artist raising money by pre-selling artwork, that is taxable income. If you're a musician raising money by pre-selling an album, that is taxable income.

Fundraisers by organizations or groups for operational costs are taxable to the individuals who receive the money. If a sports team raises money through GoFundMe and the money goes to individual players, those players may owe tax on their share. If a nonprofit raises money and distributes it to staff or board members, those individuals may owe tax.

GoFundMe fundraisers that are usually not taxable

Personal hardship fundraisers are typically not taxable. This includes fundraisers for medical bills, funeral expenses, housing after a disaster, living expenses after job loss, or other personal emergencies. The key is that the money is meant to help you cover costs you already have, not to pay you for work or a product.

Fundraisers for education expenses may not be taxable, depending on the circumstances. If you're raising money to pay tuition or student loans, the IRS may treat it as a gift. However, if you're raising money as a scholarship or grant that you then use for education, the tax treatment depends on whether the money is truly a gift or payment for something (such as work-study or a service).

Fundraisers for causes or charitable purposes are usually not taxable to the person organizing them, though the tax treatment depends on who receives the money and what it is used for. If you're raising money for a cause and the money goes to a registered charity, you are not receiving taxable income. If the money comes to you personally and you then donate it, you may have received taxable income even though you gave it away.

What to do if you're unsure about your GoFundMe

If your fundraiser falls into a gray area — such as a creative project, education funding, or a cause that has both personal and business elements — the safest approach is to report it as income and then work with a tax professional to determine whether any of it should be excluded. A tax professional (CPA or enrolled agent) can review your specific fundraiser, the donor communications, and the use of the funds to give you guidance on what to report.

Keep detailed records of your GoFundMe campaign, including the fundraiser description, donor communications, and how you used the money. If the IRS ever questions the fundraiser, these records will help you explain the nature of the money and why you reported it the way you did.

If you receive a 1099-K and you believe the money was a gift, do not simply ignore the form. File your tax return, report the 1099-K amount, and attach a statement explaining why you believe it should not be taxed. This creates a paper trail showing you were aware of the form and made a deliberate decision about how to report it.

Frequently Asked Questions

Do I have to report a GoFundMe if I don't receive a 1099-K?

Not to the IRS automatically, but if the money is taxable income, you should report it. If the IRS audits you and finds evidence of the fundraiser, you will need to explain why you did not report it. The safest approach is to report all fundraisers and note which ones you believe are gifts.

What if I raised money for myself but gave it all to charity?

You still received taxable income when the money came to you, even though you gave it away. You can deduct the charitable donation separately, but you must report the fundraiser amount as income first. The two do not cancel each other out on your tax return.

Can I claim a GoFundMe as a gift if my friends donated?

Yes, if it truly was a gift with no expectation of return or benefit to the donors. The IRS does not care whether the donors are friends or strangers. What matters is whether the money was given as a gift or as payment for something. Keep records showing the hardship and the nature of the donations.

What happens if I receive a 1099-K for a fundraiser I think was a gift?

You must report the 1099-K to the IRS. You can then file your tax return, report the amount, and attach a statement explaining that the funds were gifts and should not be taxed. The IRS may accept your explanation or may contact you for more information.

Do I owe self-employment tax on a GoFundMe?

Only if the fundraiser is for self-employment income (a business, freelance work, or service you provide). If it is a gift for personal hardship, you do not owe self-employment tax. If it is business income, you owe both income tax and self-employment tax if the total is over $400 for the year.