Will my gofundme affect a Special Needs Trust

  • 18 November 2021
  • 1 reply
  • 62 views

Hello!

I am new to this and asking for help on two questions. 

 

  1. If I set up a gofundme under my name, will that affect social security benefits?  I do not want to be penalized for this as additional income.
  2. Do I need to set up a special needs trust to withdraw funds so it does not affect my income?

Thanks in advance!


1 reply

Userlevel 7
Badge +4

Hi there, welcome to the GoFundMe Community. This is a good question, though honestly the community is unlikely to be able to give you definitive advice. As a disclaimer, I’m not a tax professional, and for something like this I’d advise speaking with yours. 

Generally speaking, donations on GoFundMe are considered to be “personal gifts” and aren’t taxed as income in the US. More info here. As you might know, there’s a few different types of social security benefits. Typically personal gifts don’t affect retirement, disability, or survivor benefits, but may have an impact on amount of eligible benefits for supplemental security income. There might also be specific rules affecting social security benefits that are unique for your state.

Basically… other community members might give general information or their own opinions, but the best way to make sure you get the correct amount of social security benefits is to consult with a tax professional who can speak to your specific situation. The official Social Security site might also be able to help give some helpful answers.

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