Will Nadya Suleman have to pay taxes on donated funds?

Question by killa: Will Nadya Suleman have to pay taxes on donated funds?
Check out this website:
http://www.thenadyasulemanfamily.com/

The octuplet's mom is now panhandling on the internet, shamelessly. My question is, since she is not a charity or non-profit, how do the income tax rules apply to her and her situation?

Because, if she does have to pay taxes for that "income," I would like to see an auditor chase down and account for every last penny.

Thanks!


Best answer:

Answer by stephenweinstein
Since you brought up this topic, I want to tell everyone that if you contribute to this family, you will probably not be allowed to deduct your contribution. You are allowed to deduct gifts to charity only if the recipient is a tax-exempt organization meeting certain requirements and are NOT to deduct any gift that is for a specific individual or family.

To answer your question:

Recipients of gifts are not required to pay tax on those gifts if they did not provide any service to the giver. (Gifts from one's employer, customers, etc., might be considered a "bonus" or a "tip", both of which are taxable.)

In certain instances, the givers must pay tax, but only on very large (over 10K) gifts.

Also, with 14 child to claim as dependents, she will probably not owe any tax anyway.

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