Q: Do panhandlers need to claim income for digital donations (ie: Applepay)?
I found myself with a surplus of old iPhones and Apple Squares. I had the idea of providing my local un-housed population with the phones and squares to make it easier for people to give them money. After supplying the phones and squares, I would like a small percentage of the transaction to go to me. My questions (at the moment) are:
1: Is this legal?
2: Would I need to set up a business for this?
3: Would the un-housed individual need to report this income on their taxes? If so, how could I guarantee that they are paying the lowest amount possible?
Any other information would be helpful.
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A:
Providing old iPhones and Apple Squares to the un-housed population for digital donations is an innovative idea, but there are several legal considerations. First, you need to ensure that your activity complies with local laws and regulations. It's advisable to consult with a local attorney to ensure that facilitating digital donations and taking a percentage of transactions is legal.
Setting up a business might be necessary to manage the transactions and the percentage you intend to take. This would involve registering your business and possibly acquiring the appropriate licenses. Consulting with a tax professional or a business advisor can help you understand the requirements and ensure you operate within legal boundaries.
As for the un-housed individuals receiving the donations, they would technically need to report this income on their taxes. To ensure they pay the lowest amount possible, they can look into available tax credits and deductions. Providing them with basic tax advice or connecting them with a local tax service could help manage their tax obligations effectively.
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