Tax Tips for Non-Profits
Non-profits have a variety of benefits when it comes to taxes, but it’s important to understand the rules and regulations for filing taxes as a non-profit organization. Lesesne Associates Inc is a full-service tax planning and preparation firm located in Laurel, MD that specializes in providing customized solutions for individuals, businesses, and non-profit organizations. With the help of our experienced professionals, we can ensure that you get the most out of your tax advantages. Here are some tips to help you get started.
1. Know the Difference Between Exempt Organizations and Non-Profits
Before you start filing taxes, it’s important to understand the difference between exempt organizations and non-profits. Exempt organizations are organizations that are exempt from federal income tax by virtue of their status with the Internal Revenue Service (IRS). Non-profits, on the other hand, are organizations that are exempt from state and federal income taxes, but still have to file taxes with the IRS. It’s important to know which type of organization you are to ensure that you are filing taxes correctly.
2. Take Advantage of Tax-Exempt Status
Once you know your organization’s status, you can take advantage of the tax benefits associated with it. Many non-profits are eligible for tax exemptions on certain types of income, such as donations, grants, and investments. Additionally, non-profits can take advantage of deductions and credits on certain expenses, such as travel, advertising, and office supplies. It’s important to understand the rules and regulations associated with each type of tax exemption to ensure that you are taking full advantage of the tax benefits available to you.
3. Understand Your Filing Requirements
Filing taxes as a non-profit organization can be complicated, so it’s important to understand the filing requirements for your organization in order to ensure that you are filing accurately and on time. Depending on the size and structure of your organization, you may need to file additional forms or documents, such as Form 990 or 990EZ. Additionally, it’s important to know when and where to file your taxes. For most non-profits, taxes are due on the 15th
