As I've said before, that was instigated by a family friend without my
knowledge or input, but from what I understand I don't think it is
possible for donations to an individual for medical purposes to be tax
deductible for the donor without the recipient being some kind of
registered 501(c) charitable organization.
I'm fairly certain that any donation is treated as a "gift" to the
recipient and as a result would not be taxable as income to the
recipient for Federal purposes.
As explained to me by my accountant, I am certainly not one, this is how it
You have a limit to how much you can "gift" anybody per year and per
lifetime. Anything above that means you have to pay tax. The recipient
rarely pays this tax. But you can make a "direct contribution" toward
tuition and medical expenses. These do not count against the above
mentioned limits. But the funds must be paid DIRECTLY to the educational
institution or medical facility/provider. There is no tax write off
involved in any of these scenarios. You would need to make a donation to a
federally (IRS) recognized charity for that to happen.
Again, I am not an accountant nor do I play one on television.
Because this is to help a specific individual, rather than a charitable
cause, it is not tax deductible. That does not imply that Give Forward
isn't a noble and charitbale way to give, just that tax law doesn't let
it be "charitable" for tax purposes.
Perfect example of the unfortunate necessity of laws to govern human
behavior. If this were somehow allowed, the plethora of dickheads in the
gene pool (starting with the lawyers?), would be abusing it for their
own, other than charitable, benefit.
Would be a long, long discussion if we are going to talk about what
should or should not be deductible. <BIG GRIN>
Just for those who don't realize it, deductions such as chariable
deductions, reduce your taxable income only, they are NOT credits
against a tax bill. This makes deductions highly regressive in their
benefits: Example: If I give $1000 to the food pantry, which is a
deductible expense, the benefit I get depends on my top marginal tax
rate. Therefore giving is most "profitable" for those whose income is
highest. Tax rates for 2013 for married filing jointly:
10% on taxable income from $0 to $17,850, plus
15% on taxable income over $17,850 to $72,500, plus
25% on taxable income over $72,500 to $146,400, plus
28% on taxable income over $146,400 to $223,050, plus
33% on taxable income over $223,050 to $398,350, plus
35% on taxable income over $398,350 to $450,000, plus
39.6% on taxable income over $450,000.
Obviously my $1000 cost me only ~$600 if I have the highest income, but
costs me $900 if I earn less than $17,850.
You have to discount the fact that you may not get a tax advantage when
helping some one else out. I don't like paying taxes either but I won't
let that stop me from helping someone. sometimes you just have to think
of how much help you would be giving.
His was simply a remark on how much more could be raised if that were
the case ... and I agree that could be a large factor in any decision to
That said, and judging from Mike's generous donation to a complete
stranger, I'm absolutely certain, and without doubt whatsoever, that tax
destructibility wasn't a factor in his decision to do so ... but
instead, an act of big heart and an inherent kindness. :)
Thank you and your assumption is correct. I have all of my family
almost converted to doing charitable contributions for Xmas rather
then spending money on things we don't need. My sisters usually give
things they have canned from their gardens and I give things I've made
in the shop. Generally just enjoy some gag gifts and a great prime
I didn't take it that way Leon, and I pretty much did it because that
evening I was in the mood to help someone out. Swingman pretty much
nailed it so everything is good. I could remember when this started
and reading what Karl went through with the health insurance
providers. I'm going to refrain from starting a conversation on
health insurance but I was happy to help even with out the tax
To the many of you here on the wRec who helped to make this possible,
thought I would share this.
MRI's this week show a significant reduction in tumors, and the bone
replacement shots, though extremely painful, are visibly working; the
doctors have gone from cautious optimism, to full blown optimism, to the
point of reducing the number of further treatments, and are now saying
that surgery may not be needed.
Michelle texted this from the hospital last night, just before the 49th
(in typical female fashion, that unicorn has been through every one of
the 49 treatments with her and, instead of a long face and a 'woe is me'
attitude, she has dressed as if going to a birthday party for most of
them ... the young lady has as much fortitude and bravery has any Navy
Thanks again guys ... you know who you are.
HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.