Don’t fear the Taxman when making your Hurricane Florence donation
WILMINGTON, NC (WWAY) — Hurricane Florence brought more than just floods of water, it also brought floods of donations.
The next consideration for many donors is determining if their kindness needs to be reported to the IRS. Those receiving aid also wonder if they will be taxed on their gifts.
Sean Eames, a CPA at W. Greene, PLLC, says you can only claim your donations if you give to a 501c3 registered charity.
Other donations, including GoFundMe accounts, are treated like gifts and you don’t have to report unless you give more than $14,000.
If you are the recipient of a GoFundMe account you have no tax liability at any amount.
Eames also advises that the rules on giving are predominately dictated by the Federal Government and states generally are the same. Some states, however, do have their own rules. North Carolina follows Federal guidelines.
He advises you should check with your personal accountant to determine your tax liability when giving. He also says to remember that places like GoFundMe take a percentage of your donation for their own overhead costs.