What is program service revenue, and how to report it on Form 990?
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Last modified 12/24/2022 2:08:21 AM EST |
Program service revenue is the fund an organization receives in exchange for providing services for a government agency for which it receives tax exemption (e.g., tuition, fees, or admissions). For example, the payment made by a government agency to a medical clinic to provide vaccinations to the general public is considered program service revenue.
Reporting Program Service Revenue with Tax 990’s Interview-based Filing Style
- Log into your Tax 990 account.
- On the dashboard, click on the "Start New Return" button.
- Select the "Tax Year" and "Form 990" options on the list of Federal Return.
- Enter your organization details and click "Next."
- On the "Organization Tax Year" page, select the tax year calendar or fiscal, for which you want to file the information return. Once done, the subsequent steps will be to fill the actual parts of the form.
- Under the Revenue section, click "Start" against Program Service Revenue, and you will be directed to the Program Service Revenue page.
- Now select "Yes" for the question, "Did you receive any program service revenues?". A popup appears and prompts you to enter the details of the program service revenues. To add more than one program service revenue, click on the Add Another button.
- Click Next and follow the subsequent steps as prompted.
- Review the details, Pay, and click the Transmit button to transmit your return to the IRS.
Reporting Program Service Revenue with Tax 990’s Form-based Filing Style
While filing your Form 990 with Tax 990 using the form-based filing style, please go to Part I, Line 9 of the Revenue section. Here, enter the program service revenue your organization earned for the prior tax year in the Prior Year field box.
Next, click on the (Part VIII, line 2g) link, and you will be directed to Part VIII, Statement of Revenue. In this part, complete lines 2a - 2f and enter the sum of its value in line 2g. The value in Part VIII, line 2g will get pre-filled automatically in Part I, line 9, Current Year field box.
To know how to report your organization's program service revenue in Form 990-EZ, click here.