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Do I need to pay taxes?

How taxes work for a fiscally sponsored organization, and when individuals might owe.

šŸ’” Your organization doesn't file taxes, The Hack Foundation handles that, since you operate under its 501(c)(3). Individuals who get paid may still have their own tax responsibilities.

Your organization

As a fiscally sponsored project of The Hack Foundation, your organization doesn't file its own taxes. The Hack Foundation takes care of the required filings under its 501(c)(3) status. There's nothing for you to file, just keep your receipts uploaded.

Getting reimbursed

A reimbursement simply pays you back for something you bought for the organization, so it isn't income and there's no tax form for it.

Paying other people

If you pay someone for goods or services, they're responsible for reporting their own income. HCB collects the right tax form, a W-9 for US recipients or a W-8 BEN for non-US recipients, when one is needed, and The Hack Foundation handles any 1099s that are required. See How do I pay someone?

Donations

Donations to your organization are tax-deductible for the donor, unless they received something in return, and HCB automatically emails each donor a receipt for their records.

Sales tax

Your tax-exempt status may let you avoid sales tax on purchases. See Are we sales tax exempt?

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