How to report the benefits paid to members in Form 990-EZ?
887 views | Last modified 12/22/2023 2:30:47 AM EST |

Applicable To
990-PF 990-N 990-EZ 990 8868 1120-POL

Benefits are generally non-wage compensation provided by organizations for employees in addition to their normal wages or salaries.

Reporting Benefits paid to members 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 Expenses section, select “Start” for Benefits Paid to or for Members
  7. Select “Yes” for the question, “Did you give any benefits to the members?”. Then, a popup will appear and prompt you to enter the following details:
    1. Amount paid as benefits 
    2. Description of the benefit
    3. Type of the benefit was paid for
  8. To add more than one benefit, click on the “Add Another” button
  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 Benefits paid to members with Tax 990’s Form-Based Filing

To report the benefits paid to members with Tax 990 using the form-based filing style, go to Part I, Line 11 of the Expenses section. Here, enter the value of benefits paid to or for members by your organization for the current tax year.

Note - Do not include the cost of employment-related benefits such as health insurance, life insurance, or disability insurance provided by the organization to its officers, directors, trustees, key employees, and other employees.

To know how to report benefits while filing Form 990, click here.

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