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Form 990 Schedule J

Introduction

Schedule J, Compensation Information is used by tax-exempt organizations filing Form 990 to report compensation information for certain employees, including key employees, officers, and directors.

In this guide, we'll learn more about Schedule J, providing insights into its purpose, filing requirements, and commonly asked questions.

Table of Contents

  • What is Schedule J?

What is Schedule J?

Schedule J, serves as a supplement to Form 990, providing a detailed breakdown of compensation offered to specific individuals within the organization, and information on certain compensation practices of the organization. The individual includes officers, directors, trustees, key employees, and other highly compensated staff.

Who must file Schedule J?

An organization that answered “Yes” on Form 990, Part IV, Checklist of Required Schedules line 23, must complete and attach Schedule J along with its 990 return.

If an organization isn't required to file Form 990 but chooses to do so, it must file a complete return and provide all of the information requested, including the required schedules.

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Schedule J Filing Requirements

All tax-exempt organizations with certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees must complete and attach Schedule J

Below, we have provided Schedule J filing requirements for each part.

Part I - Questions Regarding Compensation

Schedule J Part I asks questions regarding certain compensation practices of the organization. This part generally pertains to all officers, directors, trustees, and employees of the organization listed on Form 990, Part VII, Section A, regardless of whether the organization answered “Yes” to line 23 of Form 990, Part IV, for all such individuals.

  • Part I, lines 1, 2, 3, 7, 8, and 9 require reporting on the compensation practices of the filing organization, but not of related organizations.
  • Part I, lines 4 through 6 require information regarding both the filing organization and its related organizations.
  • Part I, lines 5 through 9, must be completed only by section 501(c)(3), section 501(c)(4), and section 501(c)(29) organizations.

Part II - Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees

Schedule J Part II requires detailed compensation information for individuals for whom the organization answered “Yes” on Form 990, Part IV, line 23.

For each individual whose compensation must be reported on Schedule J, report compensation from the organization on row (i) and from related organizations, described in the instructions, on row (ii). Do not list any individuals that aren’t listed on Form 990, Part VII.

  • (A) Name and Title
  • (B) Breakdown of W-2 and/or 1099-MISC and/or 1099-NEC Compensation
    • (i) Base Compensation
    • (ii) Bonus & incentive compensation
    • (iii) Other reportable compensation
  • (C) Retirement and other deferred compensation
  • (D) Nontaxable benefits
  • (E) Total of columns (B)(i)–(D)
  • (F) Compensation in column (B) reported as deferred on prior Form 990

Part III - Supplemental Information

Use Part III to provide narrative information, explanations, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II.

Also, list here the name of each unrelated organization that provided compensation to persons listed in Form 990, Part VII, Section A; the type and amount of compensation the unrelated organization paid or accrued; and the person receiving or accruing such compensation.

Choose TaxZerone to complete your Schedule J filing

Navigate the complexities of e-filing Form 990 with TaxZerone, an IRS-authorized e-file service provider. Our intuitive platform and dedicated support team will guide you seamlessly through every step, ensuring a stress-free and efficient filing experience.

Here’s how your Form 990 return with Schedule J attachment is transmitted to the IRS in 3 simple steps!

  1. Provide Organization Details - Choose the tax year for which you want to file a return, and provide your organization’s details.
  2. Preview the Return - Complete Schedule J and preview the information provided in the return for accuracy before transmitting.
  3. Transmit to the IRS - Transmit Schedule J and your 990 return to the IRS and get the acceptance in just a few hours.

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Even if the IRS rejects your Form 990 return, our platform allows you to make necessary corrections and resubmit it for FREE!

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Commonly Asked Questions

1. What type of compensation needs to be reported on Schedule J?

Schedule J requires reporting all taxable and non-taxable compensation provided to the covered employees. This includes salaries, bonuses, commissions, non-cash benefits like health insurance, employer-provided retirement contributions, and deferred compensation provided to key personnel and highly compensated employees.

2. Which employees are considered "key employees"?

Key employees are individuals who have significant responsibilities and influence within the organization, typically including executive-level positions such as CEOs, CFOs, and other senior management roles.

3. What if an employee receives compensation from a related organization?

Compensation provided by related organizations (entities under the control of the main organization) must also be reported on Schedule J, alongside compensation from the primary organization.