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.

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.

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.

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.

But doesn't the new W-4 not have allowances anymore? I thought they got rid of the "0 allowances" option in 2020 when they redesigned the form.

You're absolutely right, and I should have been more clear. On the new W-4 form, I don't check the multiple jobs box, and I don't claim any adjustments to income or deductions. This effectively results in maximum withholding (similar to what "0 allowances" used to do on the old form). The principle is the same though - I let my main job withhold at the standard rate, and then my smaller job also withholds at the standard rate. Since the withholding tables don't "know" about my other job, I end up with a bit more withheld than necessary, which gives me a refund rather than owing taxes.

Ugh, the same thing happened to me! I checked the multiple jobs box on both W-4s and my take-home pay was depressingly small. Huge refund but it wasn't worth struggling all year.

What's the deadline for filing an extension? And does filing an extension mean I can avoid penalties if I end up owing money?

The deadline for filing an extension is the same as the regular tax deadline - April 15th (April 18th for 2025 due to the weekend and holidays). Filing Form 4868 gives you until October 15th to submit your actual return. An extension gives you more time to file, but it does NOT give you more time to pay. If you'll owe taxes, you should estimate and pay that amount when you file the extension to avoid penalties and interest. If you're getting a refund, there's no penalty for filing after the deadline even without an extension (though you'd be delaying your refund).

Good for you! Let us know how it goes. I'd be curious to hear if they try to rush you through the review or if they actually take the time to explain everything properly.

Is this the "Get Transcript" feature? I looked at that but got confused about which option to select.

Yes, it's through the Get Transcript service. You'll need to select "Wage and Income Transcript" when prompted for the type of transcript. This will show information from forms submitted to the IRS including W-2s and 1099s. Creating an account can be a bit of a process since they've increased security measures. You'll need your ID, social security number, and some financial account numbers for verification. Once you're in, you can access transcripts for the current tax year and previous years.

This! Employers sometimes do this when they haven't been paying the proper employment taxes. Definitely report them to both the IRS and state labor board. Make them face consequences!