Tax990 Knowledge Base

What is unrelated business gross income?

An exempt organization's unrelated business gross income is the income produced by the organization through activities unrelated to scientific, educational, charitable, or any other tax-exempt purposes. Organizations with an unrelated business gross income of $1,000 or more must file Form 990-T.

Certain foundations are also liable to pay taxes on their unrelated business income if their estimated tax is $500 or more. This income can be calculated using Form 990-T and must be paid in installments.