As we know, there are several types of organizations which are allowed by the IRS to get tax exempt. As a rule, these are charity organizations, churches, and other organizations whose main income is made up from donations. It may be a religious group, educational organization or charity organization. And the most crucial part is that such a company’s earnings should not refer to the owner or some of the shareholders. Thus, If you decide to apply for a tax exempt program, your organization has to meet the following requirements:
- Solely follow religious, charitable or educational purposes
- Not follow profit purposes, but specialize solely in art or cultural aspects
As a rule, the privilege of being tax exempt is given to educational or religious organizations. Additionally, there are also criteria for becoming tax exempt for several music organizations, orchestras, and drama groups. But let’s dive deep into this theme and understand who also can become a participant of the tax-exempt program.
Personal Tax Exemption
If you are not considered a dependent of another taxpayer’s return, you can confidently apply for a personal tax exemption. It will allow you to dramatically reduce your taxable income. Marriage is also an important factor since if you are married, both of you can be tax exempt.
If you are an individual who has children living with you who are under the age of 19, current students who are under 24, both you and your family members can apply for the tax exemption program.
State and Local Exemptions
Generally, most of the states and counties provide tax exemptions to several businesses. The main goal of these exemptions is to promote the economy’s growth. Generally, it is organizations which spread their operations in different areas. For example, providing remote parts of the country with cable television, or internet.
As you can see, there is more to tax exemptions than meets the eye. Resellers holding tax exemption are not the only ones who are tax-exempt! That being said, if you are a reseller, all you’d need to do to get tax exempt, is contact us at Prestige Auditors and we will take care of the process for you! If you’re a reseller on Amazon and are facing issues like a suspension, we’d like to introduce you to our partners at Got Suspended Clients, who are experts at dealing with Amazon-related issues! Contact them now for consultation and reinstatement! By the way, are you a resident of Michigan and want to do a Michigan business entity search? You’ve come to the right place!