Discussion Question $5-19($LO$.2)$

Pooja's sister $($Kiara$)$ became quite ill earlier this year and had extensive medical bills which she could not cover. Kiara's financial problems were made worse as she had to take a $10-$month leave of absence from work. Pooja set up a crowdfunding website to help her sister and raised $$80,000$; Kiara gave these funds to the hospital to help cover her medical bills.

What is the tax treatment of the $$80,000$ to Kiara?

Any amount raised from the crowdfunding is most likely considered

a giftincome

$.$ However, if Kiara's employer provided any of the $$80,000,$ it

must bedoes not have to be

included in gross income.