Whether You Owe Taxes on GoFundMe Depends on Why You Received the Money
The short answer: most personal GoFundMe campaigns are not taxable to you, but some are. The IRS treats GoFundMe money the same way it treats any other money you receive — it depends on whether the money is a gift, income, or reimbursement. A campaign for medical bills, a house fire, or a funeral is typically a gift and not taxable. A campaign for a business idea, a book you're writing, or a service you're providing is typically income and is taxable. The person who set up the campaign may also owe taxes, depending on what they did with the money.
GoFundMe itself does not report your campaign to the IRS automatically. However, if your campaign raises money and you later face a tax audit, you will need to explain where that money came from and what you did with it. The IRS can see large deposits into your bank account and may ask questions.
Key Takeaways
- Personal hardship campaigns — for medical emergencies, natural disasters, or funeral costs — are usually gifts and not taxable income to you.
- Campaigns for business ventures, creative projects, or services you provide are usually taxable income and must be reported on your tax return.
- If you raised money for a specific purpose and spent it on that purpose, keep receipts and records showing how you used the funds.
- GoFundMe does not automatically report campaign totals to the IRS, but large deposits may trigger questions during an audit.
- If you raised money on behalf of someone else, that person may owe taxes on the funds, not you.
Personal Hardship Campaigns Are Usually Not Taxable
A GoFundMe for medical bills, a house fire, a car accident, or funeral expenses is treated as a gift under tax law. Gifts are not taxable income to the person who receives them. This is true whether the gift comes from one person or from hundreds of people through a crowdfunding campaign.
The key is that the money must be given with no expectation of repayment or service in return. If people donated to help you recover from a hardship, the IRS does not count that as income. You do not report it on your tax return, and you do not owe federal income tax on it.
However, if you raised money for a hardship but then used it for something else — such as a vacation or paying off credit card debt — you may have a problem if audited. Keep records showing that you spent the money on the stated purpose. Receipts from medical providers, repair contractors, or funeral homes are your best protection.
Business and Creative Projects Are Taxable Income
If you ran a GoFundMe to fund a business, a book, a film, a podcast, or any other project where you are providing a product or service, that money is taxable income. You must report it on your tax return, usually on Schedule C (for self-employment income) or as other income on your 1040.
This includes campaigns where donors receive rewards or perks in exchange for their donation — such as a signed copy of your book, a credit in your film, or early access to your product. Even if you call it a "pre-order" or a "reward," the IRS sees it as payment for goods or services, which is income.
You will owe federal income tax, and possibly self-employment tax, on the full amount raised. You can deduct legitimate business expenses — such as materials, equipment, or contractor fees — but the net profit is taxable. Keep detailed records of what you spent and what you earned.
Campaigns Run on Behalf of Someone Else
If you set up a GoFundMe campaign for another person — such as a family member, a friend, or a community member — the money belongs to that person, not to you. They are responsible for any taxes owed on it, not you.
However, you should make it clear in the campaign description that you are raising money on behalf of someone else. When the campaign closes, transfer the funds directly to that person's bank account or give them the money in cash. Keep a record of the transfer. If you keep the money in your own account and spend it on their behalf, the IRS may view it as your income, which creates a tax problem for you.
If the campaign raised a very large amount and you are transferring it to another person, consider asking them to document the transfer in writing. This protects both of you if questions arise later.
How GoFundMe Reports (and Does Not Report) to the IRS
GoFundMe does not automatically send campaign information to the IRS. The platform does not issue you a 1099 form, and it does not file a report with the government about how much money you raised. This is different from payment processors like PayPal or Stripe, which may issue a 1099-K if you process a certain amount of payment volume.
However, the money you receive shows up in your bank account, and the IRS can see large deposits. If you deposit $10,000 or more in cash, your bank files a Currency Transaction Report (CTR) with the IRS. Even if you deposit by check or electronic transfer, the IRS may notice unusual deposits during an audit and ask where the money came from.
The safest approach is to report the income or document the gift yourself, rather than hoping the IRS does not notice. If you owe taxes on the money and do not pay them, you may face penalties and interest if audited later.
Keeping Records to Protect Yourself
Whether your campaign is taxable or not, keep records of what happened to the money. Save screenshots of your campaign page, the final total raised, and the date the campaign closed. read your GoFundMe transaction history if the platform offers it.
If the money was for a hardship, collect receipts showing how you spent it. Medical bills, repair invoices, funeral home statements, and insurance documents all help prove that the money went where you said it would. If you spent only part of the money and returned the rest to donors, document that too.
If the money was for a business or creative project, track your expenses separately. Keep invoices, receipts, and bank statements showing what you paid for materials, services, or equipment. Calculate your net profit (total raised minus expenses) and report that on your tax return.
If you are unsure whether your campaign is taxable, consider speaking with a tax professional or calling the IRS directly. The IRS has a general helpline at 1-800-829-1040, and you can ask a specific question about your situation.
Frequently Asked Questions
Do I have to report a small GoFundMe campaign to the IRS?
If the campaign was for a personal hardship and is a gift, no — gifts are not taxable regardless of the amount. If it was for business or creative work, yes — you must report all income, even small amounts. The IRS does not have a minimum threshold for reporting self-employment income.
What if I raised money for a medical bill but only used part of it?
If you spent the money on the stated medical purpose, the portion you spent is not taxable. If you kept the remainder, that leftover money may be taxable depending on the circumstances. If donors knew the campaign was for a specific bill and you kept extra money, you may want to return it or document why you kept it.
Can I deduct GoFundMe fees from my taxes?
If your campaign is taxable income, yes — GoFundMe's platform fee and payment processing fees are business expenses and can be deducted. If your campaign is a non-taxable gift, the fees do not matter for tax purposes because you have no taxable income to report.
What happens if I don't report GoFundMe income?
If the IRS audits you and finds unreported income from a GoFundMe campaign, you will owe back taxes plus penalties and interest. The penalty is usually 20 percent of the unpaid tax, and interest compounds daily. It is cheaper and safer to report the income when you file your return.
Do I owe taxes if someone else set up the campaign for me?
No — you owe taxes based on whether the money is a gift or income, not based on who created the campaign. If it is a gift for a hardship, it is not taxable to you. If it is payment for work or a business, it is taxable to you. The person who set up the campaign has no tax responsibility unless they kept the money for themselves.