Say someone deposits 100$ dollars into my bank to go and buy something for them, do I have to report this 100$ to IRS? What if a close family member deposits 100$ into your bank account, is this considered to be an income?
If it is tax paid money by any of your familiy members, then no. For mere 100 bucks, I would surely say no need...
Well, if someone deposits money in your bank account, it is not considred income. But say if someone deposits $100 in your bank account to say buy an item which you paid $95 for it, the $5 ($100-$95) would be considered an income and would be subjected to tax. However depending on the tax rules in your country or state, you may or may not pay tax in the end.
I only know US tax law so YMMV. The first example is an "expense re-imbursement". You are accepting cash which will then be spent for the benifit of another. If you are a business and this was deposited into a business account, you would record it as misc income and the purchase as as misc expense. You may receive a gift of up to $12,000 from any person tax free. Over 12K a gift tax applies. You do not need to report gifts as taxable income. Gift rules do not apply if there is an exchange of like value. You give your car and then the person gives you 5K. In this eample that is NOT a gift.
If someone pays you in return for advertising (listing on your site or service you've done) then it is taxable. If a family member gives you money as gift like the above post states, then it's not taxable unless if it goes over a certain amount. Tax is complicated and I hate the fact that it's due soon...