What type of investment income must be reported in Form 990?

Income that is earned in the form of interest payments, dividends, capital gains through the sales of securities or assets, and such income is generally known as Investment income.

However, while filing your Form 990 with the IRS, the investment income, such as dividends, interest, tax-exempt bond proceeds, royalties, and other similar amounts, must be reported.

Reporting Investment Income 

• If you choose Interview-based filing

Under the Revenue section, click 'Start' next to the Investment Income. Then, from the list of investment income, report the one based on the income acquired by your organization and proceed further

• If you choose Form-based filing

Navigate to Part I, Line 10 of the Revenue section. Here, enter your organization’s investment income for the prior tax year in the Prior Year field.

Next, click on the (Part VIII, column (A), lines 3, 4, and 7d) link, and you will be directed to Part VIII, Statement of Revenue.

Complete the Total Revenue column (A) for the following lines in this part.

1. Part VIII, Line 3 - Enter the  Investment income (including dividends, interest, and other similar amounts)
2. Part VIII, Line 4 - Enter the Income from investments of tax-exempt bond proceeds
3. Part VIII, Line 7d - Value of Net gain or (loss)

The sum of values in Part VIII, lines 3, 4, and 7d, will automatically get pre-filled in Part I, line 10, Current Year field box, which is the organization’s investment income for the current tax year.

To learn how to report your organization's Investment Income in Form 990-EZ, click here