What is investment income, and how must it be reported in Form 990-EZ?
774 views | Last modified 9/6/2023 6:09:30 AM EST |

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

1. Log into your Tax 990 account.
2. On the dashboard, click on the “Start Return” button
3. Select the “Form 990-EZ” option on the list of Federal returns
4. Enter your organization details and click “Next.”
5. 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. 
6. Under the revenue section, select “Start” for investment income
7. Select “Yes” for the question, “Do you have any investment Income?” and enter the income earned for the following:
   1. Interest on savings and temporary cash investments
   2. Dividends and interest from securities
   3. Royalties
   4. Gross Rents
   5. Other investment income
8. 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.
9. Now click “Next” and follow the subsequent steps as prompted
10. 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.