Some homeschool groups are very small and are not interested in the benefits of tax exemption such as accepting donations or doing fundraising.

Do these small homeschool groups really need 501c3 tax exempt status?

No. They don’t.

They can run their activities without the benefits of 501c3 tax exempt status.

But then how does the IRS or their state view this group? Will they owe taxes on any surplus? Yes, they will owe tax because they do not have tax exempt status.  If they have a surplus, how do they go about filing a tax return and paying taxes?

There are a few possibilities. The IRS could view these homeschool groups as:

*under $5,000 of annual gross revenues

Can you guess which one the IRS prefers? Yep, it’s the last one! That means your homeschool group who hasn’t applied for tax exempt status should be paying taxes!

Listen to Carol Topp as she explains these options.

Featured Resource

In the podcast I mentioned my book:

Should your homeschool group be paying taxes? Could they avoid paying taxes by being a 501c3 tax exempt organization? Do you know the pros and cons of 501c3 status? Do you know what 501c3 status could mean for your homeschool group?

I have the answers for you in my book The IRS and Your Homeschool Organization. The information I share in my book has been helpful to homeschool support groups, co-ops, music and sports groups and will help you understand:

The post Is My Homeschool Group Required to Have 501c3 Tax Exempt Status? appeared first on Ultimate Homeschool Podcast Network.