I want to collect donations through a website to help pay for my insanely high student loan payments. A lawyer on one of those ask a question sites told me it was considered income. How do I pay taxes on it properly?
2007-08-17 14:11:47 · 4 answers · asked by M K 2 in Business & Finance ➔ Taxes ➔ United States
If I treat it like income and pay taxes on it, its it just the "state" and "federal" tax, or do you have to pay into medicare and fica and all that jazz?
2007-08-19 15:40:09 · update #1
So the government and the state of georgia can't do anything if it is considered a gift (under 12thousand dollars from one person for the fed.)?
2007-08-25 14:08:47 · update #2
I would attempt to make a case that these are "gifts" to you. If you can make that case there is no Federal gift tax. It would be true that the people "giving" you that money would not be able to take a donation deduction. They would only be able to do so if you were a "recognized " 501 (c) (3) which I would think that you are not and could not become one for this purpose. Georgia does not have an inheritance tax or a gift tax so if the gift idea works for the IRS it will work for Georgia. Oh Yes, Never ask a lawyer a tax question!
2007-08-18 05:21:34 · answer #1 · answered by ? 6 · 1⤊ 0⤋
You simply report the money as "Other Income" on your tax returns. You must pay tax on the money you recieve.
Only organizations that meet the requirements of Internal Revenue Code section 501(c)(3) are exempt from federal income tax as charitable organizations.
2007-08-24 22:27:45 · answer #2 · answered by Let me steer you 7 · 0⤊ 0⤋
it is like running a business ... schedule C on your Federal form 1040. plus schedule SE.
GL
2007-08-17 21:29:00 · answer #3 · answered by Spock (rhp) 7 · 1⤊ 0⤋
I beleive you will have to report it as a gift.
2007-08-23 14:17:53 · answer #4 · answered by Jessica J 1 · 0⤊ 0⤋