Contributions were mailed to a funeral home to help with a college fund for the deceased’s son. Is this 1099-MISC reportable?


We assume the gift was for $600 or more (below $600 you would not have to report in any case). As noted previously, generally you report on 1099-MISC payments made in the course of your trade or business and – according to several of our past conversations with the IRS – when the payment is in exchange for services rendered. In the case of donations, where there was no requirement of or exchange of services for payment, the donations are not reportable.

In this case, we understand the payment was issued to a funeral home for the purpose of an education fund for the decedent’s son. This payment would not be reportable since (we assume) there are no requirements for services in exchange.

We have found a few similar situations where the payment was not reportable, though none that exactly match your circumstances as we understand them. For example, charitable contributions are not reportable, provided the recipient does not perform a service in exchange for the donation, even if the charitable organization is not tax-exempt (per IRS representative Ebersoll, ID# 1000705421).

In the case of political campaign contributions, a contribution is not in exchange for services and not made “in the course of trade or business” and therefore it is not reportable (IRS rep Ms. Butler, ID# 1000705418). In another situation, a donation to a decedent’s spouse was considered a gift and because payment was not made “in the course of trade or business” for a service rendered, was not reportable (IRS rep Miss Smith, ID# 100 026 9938).

Based on our understanding of what is reportable and the above examples of what is not reportable, because this was a donation for which you neither required nor received services, and not a payment made in the course of your trade or business, we do not believe it is reportable.

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