@kritiper I agree. The penalties are huge, plus you pay interest if time passes. Sometimes the penalty is the amount of what’s owed, so basically doubling what is owed, which is ridiculous in my opinion, but fighting it is a scary prospect. I usually err on the side of not taking deductions I probably could, because I don’t want to risk it. Too nerve racking for me to worry about an audit, I don’t want to go to sleep at night with that on my mind. It’s not like you can hide gofundme money, it’s all electronic. If it was taxable I would think people are crazy not to pay the tax.
Do you think I’m lying? I don’t have a gofundme account, but I know other jellies do, so I was curious about the tax consequences. Don’t you think if I had a gofundme I would be asking my jelly friends for help?
Ever pay the IRS the wrong amount? I have. It gets corrected ASAP usually. Twice in my life I paid the wrong amount by accident. One was an adding error, and one was I forgot I had paid in an estimated tax. When I got my refund weeks after filing there was an explanation from the IRS for the different amount I received.
The tax burden of gift giving is on the giver usually, but also charity donations can be tax deductions, it made me curious when I thought about it. But these aren’t formal charities, it’s really a gift technically I guess.
I’ve been reading up on a lot of tax law lately, and I was looking at charitable donations and then a jelly recommended to another jelly to make a gofundme account so it had me thinking.