What are the benefits that must be reported while filing Form 990?
63 views | Last modified 4/19/2024 4:31:58 AM EST |

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

However, while filing Form 990, an organization that is exempt under section 501(c)(8), 501(c)(9), or 501(c)(17) must report the insurance benefits paid to their employees and organizations under section 501(c)(12) must report patronage dividends paid to the members of the organization.

Reporting Benefits paid to members in Form 990 (Interview-based Method)

1. Log into your Tax 990 account.
2. On the dashboard, click on the "Start Return" button
3. Select the "Tax Year" and "Form 990" option on the list of Federal Returns
4. Enter your organization details and click "Next."
5. On the "Organization Tax Year" page, select the calendar or fiscal tax year 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 Expenses section, click "Start" in Benefits Paid
7. Select "Yes" and click the “Add Benefits Paid” button to report the benefits paid to the organization members
8. Click “Next” and follow the subsequent steps as prompted
9. Review the details, pay, and click the “Transmit” button to transmit your return to the IRS

Reporting Benefits paid to members in Form 990 (Form-based Method)

Navigate to Part I, Line 14 of the Expenses section. Here, enter the value of benefits paid to or for members by your organization for the prior tax year.

You can provide the details of the payments made by the organization to offer benefits to its members. This includes payments made by organizations exempt under section 501(c)(8), 501(c)(9), or 501(c)(17) to obtain insurance benefits for members, as well as patronage dividends paid by section 501(c)(12) organizations to their members.