What is Schedule J?
Schedule J from Form 990 is used by tax-exempt organizations to report compensation information for their highest-paid employees. This form helps the IRS ensure transparency in how organizations pay their leaders and staff. It provides insights into salary structures and helps prevent excessive compensation practices. By accurately completing Schedule J, organizations demonstrate accountability and maintain public trust, which is crucial for their operations and funding. Understanding and filling out this form correctly is essential for compliance with tax regulations.
What is Schedule J (Form 990) used for?
Schedule J provides detailed information about compensation for key employees. It is used to:
- to report salaries and other compensation.
- to disclose bonuses and incentive payments.
- to outline benefits and deferred compensation.
How to fill out Schedule J?
- 1
Gather all necessary compensation data for officers, directors, and highest-paid employees.
- 2
Locate the correct section for each individual on Schedule J.
- 3
Input names and titles accurately in the designated fields.
- 4
Enter compensation figures, including salary and benefits, for each person.
- 5
Review your entries for accuracy and completeness.
- 6
Follow any specific instructions from the IRS regarding additional disclosures.
Who is required to fill out Schedule J from Form 990?
Organizations like nonprofits and foundations must complete Schedule J for reporting compensation details. This form helps ensure transparency regarding payment practices.
Afterward, the IRS and the public use this information to assess organizational spending and compensation trends.
When is Schedule J (Form 990) not required?
Nonprofit organizations with gross receipts of less than $200,000 or total assets under $500,000 do not need to file it. Additionally, smaller organizations that qualify to file Form 990-EZ or Form 990-N (e-Postcard) are exempt from this schedule.
If an organization does not pay compensation to its highest-paid employees, it also does not need to include Schedule J with its Form 990.
When is Schedule J due?
The deadline for Schedule J is the same as the deadline for your organization’s Form 990. Typically, this is the 15th day of the 5th month after the end of your organization’s fiscal year.
For example, if your fiscal year ends on December 31, the due date would be May 15 of the following year. If you need more time, you can file for an extension, but be sure to check the specific rules that apply to your organization.
How to get a blank Schedule J?
To access a blank Schedule J (Form 990), simply visit our platform where the form is pre-loaded in our editor. You can fill it out and download your completed form for your records.
Alternatively, you can find the official version of Schedule J by visiting the IRS website.
Do you need to sign Schedule J?
Schedule J does not require a signature according to official IRS guidelines. However, always confirm with the IRS for any recent updates.
Where to file Schedule J from Form 990?
Schedule J must be filed with the IRS along with Form 990. It cannot be filed separately.
Organizations can submit Schedule J by mailing it with Form 990 to the appropriate IRS address based on their location. They can also file electronically through IRS-authorized e-file providers.
