Whether or not your organization files a Form 990, your nonprofit or church may be eligible for a Small Employer Health Insurance premium credit. But the deadline for the necessary Form 8941 is coming soon – November 15. It’s worth your time, because you can receive up to 25% of your paid health insurance premiums back to your organization as a refund on Form 990-T.
Here’s what you need to do on Form 990-T:
1) Complete the heading at the top of page 1 (before Part I), except for items E, H and I.
2) Enter “0” on line 13, column (A), line 34, and line 43.
3) Enter the credit from line 25 of Form 8941 on line 44f
4) Complete line 45, 48, 49
5) Write “REQUEST FOR 45R CREDIT ONLY” on the top of the Form 990-T
6) Complete the signature area. Must be signed and dated by an authorized officer of the organization.
7) Attach Form 8941 (Credit for Small Employer Health Insurance Premiums) to the 990-T before filing.
Form 990-T is normally only required if an organization has $1,000 or more in UBTI (unrelated business taxable income). Your organization will not be required to complete the 990-T in future years unless you meet the gross UBTI threshold –or- wish to take advantage of another refundable credit.