How much tax is taken from donations someone gives to you?

Answer 1

Are you a charity? The term "donation" to me is something I use when money goes to a charity. If someone gives money to someone NOT in a charity, we usually use the term "gift".

So, if someone gives you money, the giver may owe taxes or may have to file a gift tax return (Form 709), but only if they give someone more than $12,000 in one calendar year. The person receiving the "gift" pays no federal tax. If you are a charity, no tax is taken from the giver or the recipient.

If you are working and someone "gives" you a tip, this is considered compensation / wages and you owe federal, state, and social security / medicare (FICA) wages on the amount.

Answer 2

None. Donations are tax free. They receive a deduction if you qualify as a charity. Whether or not this is taxable income to the recipient depends on his status.

Answer 3

IF SOMEONE GIVES YOU A GIFT OF LESS THAN $12,000 IT IS NOT TAXABLE TO ANYONE. IF IT IS MORE THAN $12,000 IT IS ONLY TAXABLE TO THE GIVER NOT THE RECEIVER.