Maximizing Strategic Year-End Tax Planning — As the year ends, taxpayers have an important chance to review their finances and make moves that can lower their 2025 tax bill. With the state and local tax (SALT) deduction limit increasing from $10,000 to $40,000, more people may benefit from prepaying state taxes before year-end—especially those who itemize deductions.
If your income has increased in 2025, confirm your estimated payments and withholdings match your expected liability. Adjusting year-end withholdings can help avoid penalties since these are treated as paid evenly throughout the year. It’s also a good time to maximize retirement contributions—401(k) and 403(b) limits are $23,500, plus catch-up options for those 50 and older. Taxpayers not covered by employer plans should review IRA or Roth IRA opportunities.
With the higher SALT limit, charitable gifts are more likely to provide a tax benefit. Consider a Qualified Charitable Distribution (QCD) from an IRA to give directly to charity while lowering taxable income. Those turning 73 in 2025 must take required minimum distributions to avoid penalties, and families can make tax-free gifts up to $19,000 per person ($38,000 per couple) before year-end.
Year-end planning isn’t just about closing out this year—it’s about setting up for success in the next. Reviewing your goals and acting strategically now can help maximize savings and position you for a strong start in 2026.
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Maximizing Strategic Year-End Tax Planning — As the year ends, taxpayers have an important chance to review their finances and make moves that can lower their 2025 tax bill. With the state and local tax (SALT) deduction limit increasing from $10,000 to $40,000, more people may benefit from prepaying state taxes before year-end—especially those who itemize deductions.
If your income has increased in 2025, confirm your estimated payments and withholdings match your expected liability. Adjusting year-end withholdings can help avoid penalties since these are treated as paid evenly throughout the year. It’s also a good time to maximize retirement contributions—401(k) and 403(b) limits are $23,500, plus catch-up options for those 50 and older. Taxpayers not covered by employer plans should review IRA or Roth IRA opportunities.
With the higher SALT limit, charitable gifts are more likely to provide a tax benefit. Consider a Qualified Charitable Distribution (QCD) from an IRA to give directly to charity while lowering taxable income. Those turning 73 in 2025 must take required minimum distributions to avoid penalties, and families can make tax-free gifts up to $19,000 per person ($38,000 per couple) before year-end.
Year-end planning isn’t just about closing out this year—it’s about setting up for success in the next. Reviewing your goals and acting strategically now can help maximize savings and position you for a strong start in 2026.
Understanding Form 990 for Nonprofit Organizations
It Depends
11 minutes 23 seconds
2 months ago
Understanding Form 990 for Nonprofit Organizations
Why Form 990 Matters For nonprofit organizations, compliance and transparency are essential to maintaining tax-exempt status and building trust with donors, grant-makers, and the public. One of the most important tools in this process is Form 990—the annual information return required by the IRS for all tax-exempt organizations. More than a compliance obligation, Form 990 offers an opportunity to present accurate financial information, demonstrate accountability, and communicate the organization’s mission and impact to key stakeholders. What Is Form 990? Form 990 is the IRS’s annual reporting requirement for tax-exempt organizations. It provides a comprehensive picture of the nonprofit’s financial activities, governance practices, and operational details. Through this form, organizations report on their mission and program accomplishments, share revenue and expense information, disclose compensation for key employees, and outline their governance structures. Unlike most tax filings, Form 990 is publicly available, making it a vital tool for maintaining transparency and accountability. Different Types of Form 990 The version of Form 990 a nonprofit must file depends primarily on its size and financial activity. There are three main tiers: Form 990-N: Designed for organizations with annual gross receipts under $50,000, this simplified “postcard” version fulfills the IRS filing requirement with minimal reporting. Form 990-EZ: Required for nonprofits with gross receipts under $200,000 and total assets under $500,000, this version requests additional financial and governance information compared to the 990-N. Full Form 990: For organizations exceeding the above thresholds, the full version requires detailed financial statements, governance disclosures, and narrative sections describing mission, programs, and accomplishments. Key Considerations for Nonprofits When preparing Form 990, accuracy, completeness, and timeliness are critical. Several points warrant particular attention: Compliance Deadlines: The standard filing deadline is 4 1/2 months after the fiscal year-end, with an option for a six-month extension. Late filings can result in penalties or, in cases of prolonged noncompliance, automatic revocation of tax-exempt status. Public Transparency: Because Form 990 is publicly accessible through various databases, accurate and thorough reporting supports credibility with donors, grantmakers, and the community. Mission Communication: Narrative sections within the form allow organizations to highlight program accomplishments and impact, offering a cost-effective way to share results with stakeholders. Potential Tax Implications While most nonprofit activities are tax-exempt, income from activities unrelated to the organization’s primary mission may be subject to Unrelated Business Income Tax. Examples include operating commercial businesses unrelated to the mission or renting out property financed with debt. These activities require separate reporting on Form 990-T and may create taxable income. Maintaining Compliance and Trust Accurate and timely filing of Form 990 ensures compliance with IRS regulations, preserves tax-exempt status, and strengthens public trust. By dedicating appropriate time and resources to this process, nonprofit organizations can meet legal requirements while effectively demonstrating accountability and impact to stakeholders.
It Depends
Maximizing Strategic Year-End Tax Planning — As the year ends, taxpayers have an important chance to review their finances and make moves that can lower their 2025 tax bill. With the state and local tax (SALT) deduction limit increasing from $10,000 to $40,000, more people may benefit from prepaying state taxes before year-end—especially those who itemize deductions.
If your income has increased in 2025, confirm your estimated payments and withholdings match your expected liability. Adjusting year-end withholdings can help avoid penalties since these are treated as paid evenly throughout the year. It’s also a good time to maximize retirement contributions—401(k) and 403(b) limits are $23,500, plus catch-up options for those 50 and older. Taxpayers not covered by employer plans should review IRA or Roth IRA opportunities.
With the higher SALT limit, charitable gifts are more likely to provide a tax benefit. Consider a Qualified Charitable Distribution (QCD) from an IRA to give directly to charity while lowering taxable income. Those turning 73 in 2025 must take required minimum distributions to avoid penalties, and families can make tax-free gifts up to $19,000 per person ($38,000 per couple) before year-end.
Year-end planning isn’t just about closing out this year—it’s about setting up for success in the next. Reviewing your goals and acting strategically now can help maximize savings and position you for a strong start in 2026.
