Have we hit the $5,000 mark?

Carol,

I am trying to do some research on the tax exempt status for our homeschool group and cannot find a clear answer. We are trying to see if we have hit the $5,000 gross receipts limit.

Would money that individual members pay to the group, so that the group can write one check to an organization, for instance a field trip, be considered in the gross receipts?

Nikki E

Nikki,
All money that comes in, even if it goes out almost right away like for a field trip, is considered gross income.

Not difficult to get over that $5,000 limit, is it?

To help in your research you might want to read my The IRS and Your Homeschool Organization

Best of success to you,

Carol Topp, CPA

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