Entering functional expenses for Form 990

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If the client is a section 501(c)(3) or (4) organization or a section 4947(a)(1) nonexempt charitable trust, expenses must be reported on a functional basis to file a complete return. Other entities may file on a functional basis if desired. For ease of data entry, several methods are available to enter expenses on a functional basis on Screens Exp, Exp-2, Event-3, Event-4, Grants, and the Officer Information window (View > Contributor / Officer > Officer Information).

Using percentages for functional breakdown

Use this procedure to enter expenses on a functional basis using percentages for Form 990, Part IX. This procedure applies only to client entity type 990E (exempt organization).

  1. Open the desired client (File > Open).
  2. Click the Income & Deductions folder in the folders block, and then click the tab for Screen Exp or Exp-2.
  3. Position the cursor in the desired indirect expense field. In this example, use the Other salaries and wages field. Press CTRL+E to open the statement dialog attached to the field. In the statement dialog, you can enter all of the salaries and wages as one total amount, or you can list each salary or wage description amount separately.
  4. In the Mgmt & General Percentage field of the statement dialog, enter the percentage of the expense that should be allocated to Management and General. UltraTax CS multiplies this percentage by the salary or wage amount entered and displays this amount in the Management & General column. UltraTax CS then displays the balance of the expense amount in the Program Services column.
  5. In the Fundraising Percentage field of the statement dialog, enter the percentage of the expense that should be allocated to Fundraising. UltraTax CS multiplies this percentage by the salary or wage amount entered and displays the amount in the Fundraising column. UltraTax CS then displays the balance of the expense amount in the Program Services column.

    Note: UltraTax CS defaults to allocating 100 percent of expense to Program Services. Enter a percentage in the Mgmt & General Percentage or Fundraising Percentage fields to allocate a portion of the expense to Management and General or Fundraising. The sum of all percentages entered cannot be greater than 100 percent. UltraTax CS automatically limits the last column with an expense amount if percentages entered are greater than 100 percent.

  6. Click OK to close the statement dialog. UltraTax CS displays the expense amounts allocated on a functional basis on the screen.

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