IRS Reminds Taxpayers of Online Crowdfunding Do's and Don'ts

The minimum level to report 1099-K drops to $5,000 this year and many crowdfunded recipients will receive 1099-Ks this year.

Photo by Christina Abken on Unsplash

At times a farmer will be involved in an accident and unlike times in the past, it is much easier to set up an online crowdfunding account for the farmer. If money sent to these sites is actually of a gift nature, the funds received by the farmer are non-taxable.

However, the farmer may end up receiving a Form 1099-K and needs to understand how to report the funds received.

The IRS issued a reminder on this last week.