Is Benevolence Taxable Income?
Hi, I’m Belinda Whitfield, and today is open Q&A day. I will tell you this is one question that comes up quite often, when it comes time to doing 1099 reporting. Someone will ask or mention that,
“Belinda, we have a lot of benevolence payments that we’re making to the needy. Sometimes we’re helping them with rent,” or you may even be helping them with utility bills and you wonder, should you be reporting that income or those payments that you’re making to those individuals on a 1099?
The response is no. Benevolence payments, that’s charitable support that you’re providing to your members is not taxable income, so you don’t have to track that. You don’t ask to ask them for a W-9, and you don’t have to report it on a 1099.
That’s my accounting tip for the day, be sure to subscribe to my channel and have a blessed day.
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