What type of investment income must be reported in Form 990?
2.6k views | Last modified 10/14/2021 3:47:28 AM EST | Added by ExpressTaxExempt Team

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

Income that is earned in the form of interest payments, dividends, capital gains through the sales of securities or assets, and such are generally known as Investment income.

However, while filing your Form 990 with the IRS, the investment income such as dividends, interest, tax-exempt bond proceeds, royalties, and other similar amounts must be reported.

Reporting Investment Income with ExpressTaxExempt’s Interview-based Filing Style

  1. Log into your ExpressTaxExempt account.
  2. On the dashboard, click on the “Start New Return” button
  3. Select the “Tax Year” and “Form 990” options on the list of Federal Return
  4. Enter your organization details and click “Next.”
  5. 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.
  6. Under the Revenue section, click “Start” for Investment Income & Royalties. Then, from the list of investment income, report the one based on the income acquired by your organization.
  7. Click Next
  8. Now, follow the subsequent steps as prompted.
  9. Review the details, Pay, and click the “Transmit” button to transmit your return to the IRS

Reporting Investment Income with ExpressTaxExempt’s Form-based Filing Style

To report Investment Income with ExpressTaxExempt’s form-based filing style, go to Part I, Line 10 of the Revenue section. Here, enter your organization’s investment income for the prior tax year in the Prior Year field box.

Next, click on the (Part VIII, column (A), lines 3, 4, and 7d) link, and you will be directed to Part VIII, Statement of Revenue.

In this part, complete the Total Revenue column (A) for the following lines.

  1. Part VIII, Line 3 - Enter the  Investment income (including dividends, interest, and other similar amounts)
  2. Part VIII, Line 4 - Enter the Income from investment of tax-exempt bond proceeds
  3. Part VIII, Line 7d - Value of Net gain or (loss)

The sum of values in Part VIII, lines 3, 4, and 7d will automatically get pre-filled in Part I, line 10, Current Year field box, which is the organization’s investment income for the current tax year.

To know how to report your organization's Investment Income in Form 990-EZ, click here.

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