If you started collecting the money AFTER you submitted your application, this would not be taxable income to you instead it would be included on your 990 for your non profit.
However, since you did receive the 1099, you will need to enter it on your return and then back the income out.
"When the IRS approves a timely filed exemption application, exempt status is recognized back to the date the organization was created. Thus, while an application is pending, the organization can treat itself as exempt from federal income tax under section 501(c)(3)." Contributions to organization with IRS application pending
To enter the 1099 Misc as non-self-employment income take the following steps:
- Income
- 1099-MIsc under Other Common Income
- Enter the information from the 1099-MIsc
- Continue through and say the work does NOT involve work that is like your main job
- Select the years you received it
- Say no, to did this involve an intent to earn money
Then you will take the following steps to remove the income:
- Income
- Less Common Income
- Miscellaneous Income
- Other Reportable Income
- Answer Yes to Any Other Taxable Income
- Enter the description such as 1099-Misc received for Non Profit prior to final status
- Enter the amount on the 1099-Misc as a negative number.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
