What is investment income, and how must it be reported in Form 990-EZ?
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Last modified 9/6/2023 6:09:30 AM EST |
Applicable To
990-PF
990-N
990-EZ
990
8868
1120-POL
Income earned in the form of interest payments, dividends, and capital gains through the sales of securities or assets is generally known as Investment income.
While filing Form 990-EZ with the IRS, the organization must provide the following information regarding their investment income.
- Interest on savings and temporary cash investments
- Dividends and interest from securities
- Gross rents
- Other Investment income
Reporting Investment Income with Tax 990’s Interview-based Filing
- Log into your Tax 990 account.
- On the dashboard, click on the “Start Return” button
- Select the “Form 990-EZ” option on the list of Federal returns
- Enter your organization details and click “Next.”
- On the “Organization Tax Year” page, select the year you want to file the information return. Once done, the subsequent steps will be to complete the actual parts of the form.
- Under the revenue section, select “Start” for investment income
- Select “Yes” for the question, “Do you have any investment Income?” and enter the income earned for the following:
- Interest on savings and temporary cash investments
- Dividends and interest from securities
- Royalties
- Gross Rents
- Other investment income
- Based on the amount you entered in the above fields, we will calculate its sum and automatically prefill the value in the Total Investment Income field.
- Now 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 Investment Income with Tax 990’s Form-based Filing
To report Investment Income with Tax 990’s form-based filing style, please go to Part I, Line 4 of the Revenue section. Here, enter the organization’s investment income earned for the current tax year.
To know how to report your organization's Investment Income in Form 990, click here.