Memories Pizza made +$800k?

[MillennialDem]

44. I doubt it

Recently Kate wrote to me and asked me a question about the 1099-K form she received after volunteering to raise money to help a sick friend. She was shocked by the big taxable income statement she received. Rightfully so.

This issue of raising funds via online sites like Kickstarter, GoFundMe, and others seems to create issues for successful fund raisers. Issues that the good samaritans are not aware of when just trying to do a good thing. Luckily I think I found a reasonable answer for her 1099-K crowdfunding dilemma.

Kate said, "My friend's mother was diagnosed with cancer and died within a few short months. As the end was nearing I started a GoFundMe page for my friend (age 24) who was to become the sole guardian of her TRIPLET siblings. Due to an amazing community effort, $36,000 was raised. All said it was a miracle...except when the 1099k came in my name and I was told to CLAIM the $36,000 as INCOME. I cannot do this!

I did not get one cent of this money and my student loans are income based, so if the family even (very kindly) paid the taxes on the money, my student loan payments would increase by $500 a month, something I just can't afford.

We are trying to transfer the account to her name but I am at a loss as what to do. I feel that she shouldn't have to pay taxes on this either, especially when fees were taken out and they netted $33,000, not $36,000. What do we do?"

http://www.huffingtonpost.com/steve-rhode/crowdfunding-to-help-a-sick-friend-can-lead-to-a-big-tax-bill-for-you_b_6615616.html?