Understanding Tax Implications and Form 1099-K on GiveSendGo

At GiveSendGo, we understand that navigating the financial aspects of receiving donations can be complex. This article aims to provide clarity on whether the donations you receive are taxed and if you will receive a Form 1099-K.

Are Donations Taxed?

The tax implications of donations received through GiveSendGo depend on several factors, including the nature of the funds, your individual tax situation, and the tax laws in your country.

Importantly, if the donations you receive are considered gifts, they are generally not considered taxable income. However, we recommend consulting with a tax professional to understand how these donations may impact your personal tax obligations.

Will I Receive a Form 1099-K?

GiveSendGo, or its payment processor, is not required to file Form 1099-K with the IRS or furnish it to the person to whom the distributions are made if the contributors to the crowdfunding campaign do not receive goods or services for their contributions.

However, if your campaign offers perks that have been approved by GiveSendGo, and the total of all payments distributed to you exceeds $600 in gross payments during a calendar year, regardless of the number of transactions or donations, then a Form 1099-K is required to be filed with the IRS. A copy of the Form 1099-K must be furnished to you.

Conclusion

We hope this information helps you better understand the potential tax implications of your GiveSendGo campaign. As always, for specific tax advice, please consult with a tax professional. If you have any further questions, feel free to reach out to our support team.

Please note: This information is up-to-date as of 2024 and is subject to change based on updates to tax laws and regulations.