Social Question

RedDeerGuy1's avatar

Do panhandlers pay tax on begging gains?

Asked by RedDeerGuy1 (18836points) 1 month ago

Just wondering.

Observing members: 0 Composing members: 0

10 Answers

SnipSnip's avatar

The money is taxable. Any money or other goods/services received for a thing or personal service is taxable. That doesn’t mean a return automatically must be filed. AGI has to be more than the standard deduction to have to even file. There are exceptions which make you file even if no tax liability.

KNOWITALL's avatar

Ours don’t, no.

kritiper's avatar

Only if they get checks and money orders. Cash money leaves no trail.

filmfann's avatar

Of course not.

YARNLADY's avatar

There is a minimum threshold, below which you do not pay tax, whether earned income or cash donations.

gondwanalon's avatar

HA! Good one!

LostInParadise's avatar

Yes, and bank robbers as well. It is filed as unearned income and needs to be itemized. Mafia kingpin Al Capone was sentenced for tax evasion. Link

LostInParadise's avatar

On the other hand, maybe the money that they spend is deductible as a charitable donation for themselves.

Love_my_doggie's avatar

Under U.S. law, gifts aren’t taxable income to recipients. A panhandler asks for money and receives some from kindly people, without providing any goods or services as consideration. That money is a gift.

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