does he have to pay taxes on the money collected and given to him we are in Illinois if that makes a difference thank you in advanced for your anwsers
2007-07-01 19:57:28 · 4 answers · asked by youhoo it's me 4 in Business & Finance ➔ Taxes ➔ United States
no it is not taxable to your brother. This money is considered to be a gift. It is not deductible for those that give or taxable to the person receiving it.
2007-07-01 23:11:35 · answer #1 · answered by Anonymous · 3⤊ 0⤋
The money provided to your brother by donors would be a gift, thus not subject to federal income tax. I can not be certain if that applies in Illinois, but it likely that it would. The person giving such a donation would not receive any deduction on their income tax because you are not a certified charity. The person making the gift could have some tax implications but those would be rare and most folks would ignore them.
2007-07-02 04:49:19 · answer #2 · answered by ? 6 · 0⤊ 0⤋
Unless you incorporate as a non-profit organization, all money received must be declared on income tax for someone, either your brother or whoever is taking care of the medical bills. If it is used for medical bills, however, make sure to keep those receipts as that can represent a substantial deduction on your taxes.
2007-07-01 20:06:23 · answer #3 · answered by Bob W. 2 · 0⤊ 4⤋
The money made would be considered gifts, so would not be taxable.
Good luck.
2007-07-02 04:53:34 · answer #4 · answered by Judy 7 · 0⤊ 0⤋