Crowdfunded generosity isn’t taxable – but IRS regulations haven’t kept up with the growth of mutual aid

Some Americans are discovering that monetary help they received from friends, neighbors or even strangers may be treated as taxable income.

By: Shelly Tygielski, Indiana University and Pamala Wiepking, Indiana University; Vrije Universiteit Amsterdam, The Conversation

Outlets: The Conversation

Published: February 23, 2026

Words: 1,373

Last Updated: 10 hours, 5 minutes ago

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By Shelly Tygielski, Indiana University and Pamala Wiepking, Indiana University; Vrije Universiteit Amsterdam

Have you ever received some money through a GoFundMe campaign or Venmo or CashApp transfers after a medical emergency, natural disaster or other crisis?

If so, you may have also gotten an unwelcome surprise: a federal tax form that treats what you got as a gift as if it were earned income. And receiving this form can also affect your state tax …

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