Question

do you think should government issue tax credits for non profit organisation

Answer 1

Ans- Nonprofit organizations are exempt from federal income taxes of the Internal Revenue Service (IRS) tax code. A nonprofit organization is an organization that engages in activities for both public and private interest without pursuing the goal of commercial or monetary profit.

Nonprofits, which can include private foundations and churches, are able to more readily raise money as a non-taxable organization. Individuals and other organizations are more likely to contribute nontaxable nonprofits because they can reduce their own tax liability. Nonprofits are, of course, not exempt from withholding payroll taxes for employees, and they also are required to pay taxes on income from activities that are unrelated to their mission.

All nonprofits, regardless of size, may be entitled to a new employee retention tax credit. This is designed to encourage employers not to lay off their employees during the pandemic.