Do we need to pay taxes on the total amount of money that was raised for our family at a benefit ?

This isn't really a family law question, it is more of a tax question. What I have found to be helpful is to contact the IRS help lines, and the help lines at the Wisconsin Department of Revenue. They will gladly help you. May I suggest that you keep good notes when talking to them, and record the time and date of your call. That way if there is an issue later you can prove you made "due diligence." It will lessen any penalty or interest. The IRS help lines can be found at: http://www.irs.gov/localcontacts/article/0,,id=98349,00.html The WDR help line is at: http://www.dor.state.wi.us/faqs/pcs/assist.html I hope this helps.