Form 990-T: Exempt Organization Business Income Tax Return
Published November 8, 2026
Form 990-T is the income tax return for exempt organizations that have unrelated business income. Many nonprofits have a tax-exempt status but still owe tax on income from a business that is not related to their exempt purpose. Form 990-T is where that income is reported and taxed.
This post is general information from the 2025 Form 990-T and its instructions. It does not say whether any activity of your organization is taxable. That depends on the facts.
Who must file
The instructions say an exempt organization must file Form 990-T if it has gross income of $1,000 or more from a regularly conducted unrelated trade or business. This applies to organizations exempt under section 501(a), and to qualified tuition programs and ABLE programs. Trustees of certain retirement trusts and accounts must also file if they have $1,000 or more of such income.
One exception applies. The instructions say a section 501(c)(1) corporation that is an instrumentality of the United States, and that was organized and exempt by an Act of Congress, does not have to file.
Gross income means gross receipts minus cost of goods sold. The instructions also say that a disregarded entity is treated as a branch or division of its parent. Its income is reported on the parent organization's return.
What the form does
- Part I figures the total unrelated business taxable income. You start with gross income from each unrelated trade or business and subtract allowable deductions.
- Line 8 is the specific deduction. The form says it is generally $1,000, but the instructions list exceptions.
- Part II figures the tax. For an organization taxed as a corporation, the instructions say to multiply Part I, line 11, by 21%.
- Part III lists credits, amounts due, payments, and any tax still owed or overpaid.
- Part IV asks about foreign financial accounts and certain other activities.
The instructions say to complete a separate Schedule A (Form 990-T) for each unrelated trade or business. The form asks for the number of Schedules A you attach.
When the return is due
For a calendar year, most organizations file by the 15th day of the fifth month after the year ends. For 2025, that is May 15, 2026. Some trusts and accounts file earlier. The instructions list employees' trusts under section 401(a), IRAs, Roth IRAs, Coverdell education accounts, and Archer MSAs. These file by the 15th day of the fourth month.
If the due date falls on a Saturday, Sunday, or legal holiday, you may file on the next business day.
Extensions
To request an automatic extension of time to file, use Form 8868. The instructions say to file Form 8868 by the original due date of the return.
Form 8868 extends the time to file. If the return is filed late, the instructions have a section on interest and penalties. Read it before you file.
Estimated tax
An organization can owe an estimated tax penalty when it does not make estimated payments on time. The instructions say this penalty generally applies when the tax liability for the year is $500 or more and the organization did not make the required estimated payments. Form 2220 is used to figure the penalty, and the instructions explain when it is needed.
Records and related topics
Keep the records that support each unrelated business item, including the gross receipts, the cost of goods sold, and the expenses. For how long to keep those records, see How Long Should I Keep My Tax Records?.
If your organization also has a split-interest trust, the return rules differ. See Form 5227: Split-Interest Trust Information Return. A trust with income from an unrelated business may also need to read Estate Income and Form 1041: The Basics.
Sources: Sources: IRS, Form 990-T, Exempt Organization Business Income Tax Return (2025) (https://www.irs.gov/pub/irs-pdf/f990t.pdf); Instructions for Form 990-T (2025) (https://www.irs.gov/pub/irs-pdf/i990t.pdf) This is general information, not advice about your specific return.
