If I am the treasurer of a small club who made under $1000 with zero expenses in 2019 what do I file? It is a small business with an ein, but I dont know what to file.

[1738kyle]

I am the treasurer for a club at my college. I am trying to file for my club which does not have a driving factor for profit. The club makes money based on membership fees and I have no idea how to file for it. I have an in which makes it a small business, but I do not know how to file.

[BillM223]

Who owns this club? The members? The school? You?

Is the club intended to be a non-profit (i.e., does it satisfy any of a large number of non-profit categories)?

Is it incorporated in your state? Did you incorporate as a non-profit in your state?

Have you applied for non-profit status with the IRS (this is different from the state)? If you have non-profit status with the IRS, then you file a form 990-N in your case. TurboTax does not do this.

So I need some more information...

[1738kyle]

I own the club since the school does not affiliate with us. The club is intended to be a nonprofit and to serve the people and give them opportunities through their membership fees. If this information helps, it was signed up as a social/savings club when creating the ein. I do not believe it is incorporated in my state since I have not taken any steps to try to incorporate it. I have not filed for nonprofit status due to the online fee, I did not think it would make sense since this is only the first year of this club. I was looking into form 990-N, but you must have the tax-exempt status to use this form if I am correct? Even though the club practically meets the criteria of being tax-exempt, it has not been filed. I really appreciate your time thank you so much. 

[BillM223]

OK, so you "own" it (for now).

You can treat this as a hobby.

• Sign in to your TurboTax account
• Click on Federal Taxes tab
• Choose Wages and Income
• Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C
• Click Start to right of Hobby income and expenses

Yes, this means that you may pay taxes on this income, until you do the following...

HOWEVER, do you want this club to survive your graduation from college? If yes, then you should incorporate it as a non-profit in your state (if it meets the qualifications - we don't give legal advice here).

Now the club is its own entity that will survive you.

Once that's done, then you should apply to the IRS for non-profit status.

Is there a law school at your college or in your area? You might ask them for some free advice.

[1738kyle]

I already filed my personal taxes earlier this year, but filing as a hobby will cover the business/club correct? In other words, is filing as a hobby allowing me to cover my other "income" since I technically own it?

When I file will I use the information of the business/club or will I use my personal info since I own it?

Does this form allow me to file for both federal and state? 

[BillM223]

"is filing as a hobby allowing me to cover my other "income" since I technically own it?"

Yes.

"When I file will I use the information of the business/club or will I use my personal info since I own it?"

You will add this hobby information to your own return, as I showed in the answer just above.

"Does this form allow me to file for both federal and state? "

TurboTax does both the federal and state individual tax return (yours). If you enter hobby income in the way I showed above, this will show on both your federal and state return.

Since you have already filed, you will need to amend your return to add this information. Please see this TurboTax FAQ for how to amend your return with TurboTax - https://ttlc.intuit.com/replies/3288565

This "hassle" of adding this to your personal tax return is another good reason to incorporate as a non-profit in your state if you can, and to also get non-profit status from the IRS.

You will have to deal with a new set of forms and reporting procedures, but it will get the club off your own tax return.

NOTE: There are thousands or even hundreds of thousands of neighborhood groups, trade associations, fraternities (not necessarily in the Greek sense) and other groups that are part of American life that go through this same process, so the knowledge you acquire here will not be wasted.

[1738kyle]

I did not file my taxes through TurboTax originally this year, I did my taxes through a CPA. Would I still be able to amend my taxes through TurboTax, or would I have to go back to my CPA and have them amend it for me?

[BillM223]

To amend through TurboTax, you would need to recreate your original return through TurboTax, then tell TurboTax that you want to amend the return. To do this, you probably have to go all the way through the process and then tell TurboTax that you are going to print and mail the return (not e-file). Then close and reopen the return and it will be ready for you to amend.

[1738kyle]

Basically I am faking out TurboTax so that they think I'm making a new one, but hit print and mail so that I do no get two money back returns from the government. Then I amend and file the amendment electronically so that the government receives and understands the amendment even though I did my original taxes through my CPA. This basically ensures I do not take more money than I should, but also ensures they receive and review the amendment?

[BillM223]

Yes, you are faking out TurboTax...but you couldn't e-file the "original" return anyway because it was already done through your CPA (I presume it was e-filed).

However, you will have to print and mail the amended return - TurboTax does not support e-filing amended returns (it may next year).

The IRS does not care who is doing the original return and the amended return. All they know is what you (or anyone) sends to them.