Income Thresholds for Filing Form 990

Also read Amie Stevenson’s related post – The Value of a Well Prepared 990

Form 990 is an annual tax return filed by nonprofit organizations in the United States to the IRS. It provides a comprehensive overview of a nonprofit’s financial activities, governance, and compliance with tax-exempt status requirements. However, the income limits for filing Form 990 depend on the size of your organization, particularly its gross receipts or total annual income.

Form 990 (Full Form):

Organizations with gross receipts exceeding $200,000 or total assets over $500,000 must file the full Form 990. This detailed form provides comprehensive information about the nonprofit’s revenue, expenses, executive compensation, and more.

Form 990-EZ (Short Form):

Nonprofits with gross receipts between $50,000 – $200,000 and total assets under $500,000 are eligible to file the shorter, simplified version of Form 990 — Form 990-EZ. This form requires less detailed information but still covers key financial data.

Form 990-N (e-Postcard):

Small nonprofits with gross receipts of $50,000 or less can file Form 990-N, often referred to as the “e-Postcard.” This is a very basic online filing that asks for minimal information, such as the organization’s name, address, and confirmation of eligibility to file.

Form 990-T:

Any tax-exempt organization with Unrelated Business Income (UBI) over $1,000 must file a Form 990-T. This form reports the income from activities unrelated to the organization’s tax-exempt purpose, and taxes may apply to the net income from those activities.

Form 990-PF:

Private foundations under Section 501(c)3 file a Form 990-PF regardless of their size or income. This form is used to figure the tax based on investment income, and to report charitable distributions and activities.

Exemptions and Other Considerations

Certain organizations, like churches, conventions of churches, and other religious organizations, may be exempt from filing Form 990, regardless of their income levels. However, even exempt organizations must adhere to other reporting requirements depending on their activities and status.

It’s important your nonprofit leaders understand these thresholds and ensure they file the correct form to maintain compliance with IRS regulations and preserve your tax-exempt status.

If you have any questions about which Form 990 your organization needs to file, KT has a dedicated nonprofit team available to help!