Form 5013-SB

What Is Form 5013-SB?

Form 5013-SB is a document utilized by the Internal Revenue Service (IRS) in the United States. It is designed for specific small organizations—those that have gross receipts of $5000 or less—that are looking for a tax exemption status under Section 501(c)(3). This form is a streamlined version of the longer Form 1023. It is not only easier to fill out due to its streamlined and simplified nature but it also comes with a faster processing time compared to its counterpart.

How to Fill Out Form 5013-SB

Here is a detailed guide on how to fill out the Form 5013-SB, the "Allowable Amount of Federal Non-Refundable Tax Credits," specifically for non-residents of Canada, including those electing under sections 216.1 or 217 of the Income Tax Act:

1. Identify your net income from line 23600 of your tax return.
2. Refer to Schedule A to find your net world income noted on line 14.
3. Calculate the percentage of net income included in net world income by dividing the amount from step 1 by the amount from step 2 and then multiplying by 100.
4. If the percentage calculated in step 3 is 90% or more, enter the amount from line 35000 of your return directly on line 126 of your return.
5. If the percentage calculated in step 3 is less than 90%, proceed to determine which part of the form applies to you: Part A if you are a non-resident not electing under section 217, or Part B if you are a non-resident electing under section 217.
6. For Part A: Sum the amounts from lines 31600, 31900, and 32300 of your return. Multiply this total by the applicable rate to get the adjusted figure.
7. Add the amount from line 34900 of your return to the result from step 6. Enter the sum on line 126 of your return.
8. For Part B: Note the total federal non-refundable tax credits from line 35000 of your return.
9. Sum the amounts from lines 31220, 31240, 31270, 31285, 31300, 31350, and 31900 of your return, and multiply this total by the applicable rate.
10. Subtract the result of step 9 from the total federal non-refundable tax credits noted in step 8.
11. Note the amount eligible for the section 217 election from line 13300 of Schedule C. Multiply this amount by the applicable rate.
12. Compare the amounts from steps 10 and 11. Enter the lesser amount on line 126 of your return.

Attach a copy of this completed schedule to your return. Ensure that all calculations are accurate to comply with the tax regulations applicable to non-residents of Canada.

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