3 ms·

At what point is Gittip going to be issuing 1099s for all of the individuals it donates to?

• enduser 14y ago
  IANAL. The IRS allows gifts (bona fide no-strings-attached gifts) from individuals to individuals up to $13,000 per year with no tax required†. After $13,000 it is the responsibility of the giver to pay taxes on the gift, not the recipient. To be clear, the person receiving gifts can receive up to $13,000‡ per giver tax-free. There is no limit on how much a recipient may receive as a gift without paying tax. gittip does not even approach these limits, and if it did then the giver would file Form 709, and there would be no 1099. † http://www.irs.gov/businesses/small/article/0,,id=108139,00.html http://www.irs.gov/businesses/small/article/0,,id=108139,00.... ‡ married couples may collectively give up to $26,000 per recipient per year
  • whit537 14y ago
    Here's the ticket tracking the tax implications of Gittip: https://github.com/whit537/www.gittip.com/issues/96 https://github.com/whit537/www.gittip.com/issues/96 TL;DR: It's too early to tell. We've started contacting tax professionals and don't have good answers at this point.
  • debacle 14y ago
    If people start making upwards of 5k from gittip, the IRS is going to classify that as income.