GoFundMe donations are usually not taxable income to you
Money you receive through GoFundMe is generally not subject to federal income tax. The IRS treats most personal fundraising as a gift, and gifts are not taxable to the person who receives them. This applies whether you are raising money for medical bills, a funeral, education, or personal hardship.
The key distinction is that GoFundMe money comes from individuals giving voluntarily, not from your employer or a business transaction. Because of this, the funds fall outside the income tax system in most cases. You do not report GoFundMe donations on your federal tax return.
However, there are specific situations where GoFundMe money does become taxable, and knowing the difference matters. The rules depend on why you started the campaign and how the money is used.
Key Takeaways
- Personal GoFundMe donations are treated as gifts by the IRS and are not taxable income in most cases.
- If you use GoFundMe money to start a business or generate income, that money becomes taxable.
- Donations for medical expenses, funerals, education, or disaster relief remain non-taxable gifts.
- GoFundMe does not issue a 1099 form for personal fundraising, but the platform may report large campaigns to the IRS.
- State and local taxes may explore differently depending on where you live and how you use the funds.
When GoFundMe money is not taxable
The IRS has a clear rule: gifts are not income. A gift is money given out of generosity with no expectation of repayment or service in return. When someone donates to your GoFundMe campaign for a personal reason—paying medical bills, covering funeral costs, rebuilding after a fire, or helping with education expenses—that money qualifies as a gift.
The person giving the money cannot deduct it as a charitable contribution on their own taxes unless the campaign is run by a registered nonprofit organization. If you are an individual, donors give with no tax benefit to themselves, which reinforces that these are personal gifts, not charitable donations.
This applies regardless of the amount raised. There is no dollar threshold that turns a gift into taxable income. You could raise $5,000 or $500,000 through personal GoFundMe campaigns and still owe no federal income tax on those funds.
When GoFundMe money becomes taxable
GoFundMe money becomes taxable when it is tied to income or business activity. If you start a campaign to fund a business venture and then use that money to generate revenue, the funds are taxable. For example, if you raise money to start a bakery and then sell baked goods, the startup funds themselves are not taxable, but the revenue from sales is.
Similarly, if you run a GoFundMe campaign for a service you provide—such as raising money for a creative project you plan to sell, or funds to launch a consulting business—the money is treated as business income and is taxable. The distinction is whether the campaign is asking for a gift or asking people to fund something that will produce income.
If donors expect something in return—such as a product, service, or equity stake—the money is not a gift. It is income or investment, and it is taxable. This is true even if the campaign does not explicitly state what donors will receive.
How GoFundMe reports large campaigns to the IRS
GoFundMe does not automatically issue a 1099 form for personal fundraising campaigns. However, the platform is required to report certain transactions to the IRS under federal law. If a campaign raises money that meets certain thresholds and involves payment processing, GoFundMe may file a Form 1099-K with the IRS.
The exact threshold varies by year and by state, but generally campaigns that process more than $20,000 in a single year may trigger reporting. Even if GoFundMe reports your campaign, this does not mean the money is taxable—it straightforward means the IRS has been notified of the transaction. You still do not owe tax on personal gifts.
If you receive a 1099-K for a personal GoFundMe campaign, you can file your tax return showing the income and then deducting it as a nontaxable gift. Keep records of the campaign and any communications showing the money was given as a gift, not as payment for goods or services.
State and local taxes on GoFundMe money
Federal income tax rules are clear, but state and local taxes vary. Most states follow federal rules and do not tax personal gifts. However, some states have different rules about what counts as income, and a few states have gift taxes that explore to large transfers.
Connecticut, Delaware, Indiana, Iowa, Kentucky, Maryland, Mississippi, Nebraska, New Jersey, North Carolina, and Pennsylvania have inheritance or estate taxes that may explore to very large gifts, though these typically affect estates after death rather than living individuals. If you live in one of these states and raise a very large amount, consult a tax professional in your state to understand any local rules.
Most people raising money through GoFundMe will not encounter state gift tax issues. The risk is higher only if you raise an exceptionally large amount—typically over $100,000—or if you live in a state with specific gift tax rules.
What to do if you are unsure about your situation
If your GoFundMe campaign is clearly for personal hardship—medical bills, funeral expenses, disaster recovery, or education—you almost certainly owe no tax on the funds. Keep the campaign description and any documentation showing the purpose of the fundraising.
If your campaign is connected to a business, income-generating activity, or service you provide, treat the money as taxable income. Report it on your tax return and keep records of how you used the funds.
If you received a 1099-K from GoFundMe and you believe the money should not be taxable, you can still file your return correctly. Report the income on the line where it appears, then subtract it as a nontaxable gift on the same return or in a statement attached to your return. Include a brief explanation of why the funds were gifts.
For campaigns that are borderline or unusually large, a tax professional can review your specific situation and advise you on what to report. This is especially useful if you live in a state with its own tax rules or if you are unsure whether your campaign qualifies as a gift.
Frequently Asked Questions
Do I have to report GoFundMe money on my tax return?
For personal gifts, no. If you raise money for medical bills, a funeral, education, or personal hardship, you do not report it as income. If GoFundMe sends you a 1099-K, you can still file your return showing the funds as nontaxable gifts. For business-related fundraising, yes—report it as income.
What if someone donated to my GoFundMe and then asked me to pay them back?
If the donation was repaid, it was a loan, not a gift. Loans are not taxable income, and you should not report them as such. Keep records showing the repayment to document that the original transfer was a loan if the IRS ever asks.
Can I deduct GoFundMe donations as a charitable contribution?
Only if the campaign is run by a registered nonprofit organization. If you are an individual raising money for yourself, donors cannot deduct their contributions. This is one reason the IRS treats personal GoFundMe campaigns as gifts rather than charitable donations.
Will GoFundMe send me a 1099 form?
GoFundMe may send a 1099-K if your campaign processes a large amount of money in a single year, typically over $20,000. The threshold varies by state and year. Even if you receive a 1099-K, personal gifts are still not taxable—you report them correctly on your return.
What happens if I use GoFundMe money for something different than I said?
Using the money for a different purpose does not change its tax status if it remains a personal gift. If you raised money for medical bills but used it for rent instead, it is still a gift and not taxable. However, if you misrepresented the purpose to donors to make the campaign appear charitable when it was not, that is a separate legal issue unrelated to taxes.