Form 4940-2025

See details

4.9 out of 5

33 votes

The document provides essential tax information for Active Duty Military and Reserve Personnel, focusing on how significant life events impact their tax situations. It covers topics such as joint returns, armed forces pay, moving expenses, combat pay, tax credits, and extensions of deadlines. Additionally, it outlines resources for further assistance and details about the Volunteer Income Tax Assistance (VITA) program available to military members.

Here's how it works

01. Edit your form online

Type text, add images, blackout confidential details, add comments, highlights and more.

02. Sign it in a few clicks

Draw your signature, type it, upload its image, or use your mobile device as a signature pad.

03. Share your form with others

Send it via email, link, or fax. You can also download it, export it or print it out.

How to use or fill out form 4940 with our platform

Ease of Setup

DocHub User Ratings on G2

Ease of Use

DocHub User Ratings on G2

Click ‘Get Form’ to open it in the editor.
Begin by entering your personal information in the designated fields, including your name, address, and Social Security number. Ensure accuracy to avoid processing delays.
Proceed to the section regarding military pay and allowances. Carefully read the instructions and input any relevant figures based on your income sources as outlined in IRS Publication 3.
In the moving expenses section, detail any unreimbursed costs associated with your relocation due to a permanent change of duty station. Refer to IRS Publication 521 for guidance on what qualifies.
Complete the combat pay section by indicating if you served in a combat zone. This may affect your taxable income, so ensure you check the appropriate box.
Review all entries for accuracy before submitting. Utilize our platform’s features to save and share your completed form easily.

Start using our platform today for free to simplify filling out form 4940!

be ready to get more

Complete this form in 5 minutes or less

Get form

Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

Who pays the 720 excise tax?

Excise taxes are independent of income taxes. Often, the retailer, manufacturer or importer must pay the excise tax to the IRS and file the Form 720. Some excise taxes are collected by a third party.

What is the IRS Code 4940?

Internal Revenue Code Section 4940 imposes an excise tax on the net investment income of most domestic tax-exempt private foundations, including private operating foundations. Some exceptions apply. An exempt operating foundation is not subject to the tax.

How do you calculate the excise tax?

The formula is the price of product tax rate quantity = tax liability.

Do private foundations pay taxes on investment income?

There is an excise tax on the net investment income of most domestic private foundations. This tax must be reported on Form 990-PF, Return of Private Foundation PDF, and must be paid annually at the time for filing that return or in quarterly estimated tax payments if the total tax for the year is $500 or more.

What is the purpose of form 941?

Employers use Form 941 to: Report income taxes, Social Security tax, or Medicare tax withheld from employees paychecks. Pay the employers portion of Social Security or Medicare tax.

What is the 5 percent rule for family foundations?

In short, the U.S. government expects foundations to use their assets to benefit society and it enforces this through section 4942 of the Internal Revenue Code, which requires private foundations to distribute 5% of the fair market value of their endowment each year for charitable purposes.

What is the excise tax on a family foundation?

A: For tax years beginning after Dec. 20, 2019, domestic tax-exempt private foundations are subject to an annual excise tax of 1.39% on their net investment income (IRC Sec. 4940(a)).

Are nonprofits subject to federal excise tax?

The Tax Cuts and Jobs Act added a provision stating that, beginning in 2018, nonprofit organizations could be charged an excise tax if it pays more than $1 million to certain covered employees. These final regulations generally mirror the proposed regulations released in 2020 and guidance provided in Notice 2019-09.

Form 4940-2025

Here's how it works