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To directly answer your original question - $500-1000 is definitely on the high side for just filing a 990-N. That's the kind of price you might pay for a full 990 with financial statements and schedules, not the simplified e-Postcard. I'd suggest first checking if your national fraternity organization provides any tax filing assistance. Many larger Greek organizations offer support to their chapters for exactly this situation. They might have guides or even staff who can help you through the process. If you decide to go the DIY route (which is completely reasonable for a 990-N), make sure you keep all the confirmation emails/documents from your filing. You'll want proof that you've met your obligations in case questions ever come up.
Thanks for mentioning the national org - I didn't think about that! I just checked our member portal and it looks like they actually do have some resources specifically for chapter treasurers. Apparently they even host a monthly zoom call where they answer tax questions from chapter officers. Do you know how soon after our fiscal year ends we need to file? Our fiscal year follows the academic year and ended May 31st.
The 990-N is due by the 15th day of the 5th month after your fiscal year ends. So with your May 31st fiscal year end, you'd need to file by October 15th. That's good news about your national organization resources! Those monthly calls could be incredibly valuable, especially if you have any fraternity-specific questions that general tax advice wouldn't cover. Many national Greek organizations have dealt with these exact issues across hundreds of chapters for decades, so they often have very specific guidance that's tailored to your situation.
Quick tip - make sure your fraternity is actually eligible for the 990-N! Some social fraternities operate under section 501(c)(7) as social clubs rather than 501(c)(3) charitable organizations, and the filing requirements can be different. Also check if your state has separate filing requirements beyond the federal 990-N. In some states, even small exempt organizations need to file additional forms or annual reports to maintain their status.
Yeah this is important. My fraternity had to file a 990-EZ even though our income was under 50k because we were classified as a social club not a charitable org. Found out the hard way after doing the 990-N incorrectly for 2 years.
One thing I haven't seen mentioned yet - make sure you're also filing an FBAR (FinCEN Form 114) if the total of all your foreign accounts was over $10,000 at any point during the year! That's separate from your tax return and has a different deadline.
This is so important! I got hit with a huge penalty for not filing FBAR even though I reported all my income correctly. The FBAR deadline is actually April 15 now, same as taxes, but with an automatic extension to October.
Just a quick note about physical presence test - if you're trying to qualify for the Foreign Earned Income Exclusion, you need to be physically present in foreign countries for at least 330 days in a 12-month period. Some digital nomads mess this up by spending too much time back in the US. Keep good records of your entry/exit dates!
Something important that hasn't been mentioned - you need to watch out for state-level taxes too, not just federal. Since you mentioned the property is in a state where neither you nor your brother live, you may be subject to non-resident state income taxes when you sell. Some states will withhold a percentage of the sale proceeds from non-residents. You may need to file a non-resident state tax return in the state where the property is located to potentially get some of that withholding refunded.
I hadn't even thought about the state tax implications! Do you know if all states have these non-resident taxes on property sales, or does it vary by state? The property is in Missouri, and I live in Colorado if that helps.
It definitely varies by state. Missouri does have a requirement for non-resident withholding on real estate sales. They generally require 2% of the sale price to be withheld, but the exact requirements depend on your specific situation. You'll want to look into Form MO-2NR (Statement of Income Tax Paid) which the buyer may need to complete. However, if your sale qualifies for certain exemptions, you might avoid the withholding. Missouri has specific rules about when withholding is required for non-residents. After the year ends, you'll need to file a Missouri non-resident state tax return to report the gain and potentially get a refund of any excess withholding. The good news is that Colorado will generally give you a credit for taxes paid to Missouri to avoid double taxation.
Has anyone mentioned the possibility of a 1031 exchange? If you're planning to invest in other real estate, you might be able to defer the capital gains taxes.
A 1031 exchange wouldn't work well here. Those are for investment or business property, and inherited land that's being partially sold to family doesn't typically qualify. Plus, 1031 exchanges have strict timing requirements (45 days to identify replacement property, 180 days to close) and require a qualified intermediary to hold funds. Doesn't sound like what OP needs.
Another important thing to know about the Saver's Credit that hasn't been mentioned yet: it's non-refundable! That means if your tax liability before the credit is less than the credit amount, you won't get the difference refunded to you. For example, if your total tax liability is only $300 and you qualify for a $400 Saver's Credit, you'll only get $300 of benefit (reducing your tax to zero), not the full $400. This tripped me up last year and I was expecting more back than I actually got.
Does this mean it's not worth contributing to retirement accounts if you have a low tax liability? Like if I'm only going to owe $200 in taxes anyway?
It's absolutely still worth contributing to retirement accounts even with a low tax liability! While you might not get the full benefit of the Saver's Credit, you're still building your retirement savings, which is the primary benefit. Contributing to retirement accounts has multiple tax advantages beyond just the Saver's Credit. With traditional accounts, you're reducing your taxable income, and with Roth accounts, you're getting tax-free growth and withdrawals in retirement. These long-term benefits typically far outweigh the limitations of the credit.
I was trying to figure out the Saver's Credit using FreeTaxUSA but got confused because I also claimed the Child Tax Credit. Do these credits affect each other? My income is around $44k and I'm head of household with 2 kids.
The Saver's Credit and Child Tax Credit are completely separate and don't directly affect each other's calculations. You can claim both! The only "interaction" is that claiming the Child Tax Credit might reduce your tax liability, which could limit how much of the Saver's Credit you can use (since it's non-refundable). With $44k income as head of household with 2 kids, you should qualify for the 10% or 20% tier of the Saver's Credit depending on the exact AGI breakpoints for 2025. Just make sure you're contributing enough to retirement accounts to maximize the credit!
Thanks for explaining! I had about $3,000 in tax liability after all deductions but before credits, and the Child Tax Credit reduced it by $2,000. So I guess I only had $1,000 left that could be offset by the Saver's Credit. Makes sense now why I didn't get the full amount I calculated.
StarStrider
7 Has anyone tried using the IRS2Go mobile app instead of the website? I had similar timeout issues on their website last year but discovered their app sometimes works when the site doesn't. It has a transcript request feature that uses a different system. Worth a shot before paying for a service or making appointments!
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StarStrider
•11 I tried the app last month and still had issues, but it did work eventually after a few attempts. The verification process seemed more streamlined than the website. Maybe because fewer people are trying to use the app compared to the main site? Definitely worth trying before paying for anything.
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StarStrider
•7 The IRS2Go app does use a slightly different authentication system which sometimes avoids the timeout issues on the main website. In my experience, it works best early in the morning (before 8am) or late at night when traffic is lower. Also, make sure your app is updated to the latest version as they've made improvements to the transcript request feature recently.
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StarStrider
15 If everything else fails, file Form 4506-T by mail AND submit an extension using Form 4868 to give yourself more time. The extension gives you 6 more months to file (though you still need to pay any estimated taxes by the original deadline). This buys you time to get your transcript without penalty. I had to do this last year because of similar IRS issues.
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