CIFT-401W: Unrelated Business Income Worksheet for IRC 401(a) and 501 Organizations (2024)
Louisiana · Louisiana LDR · Used for tax years 2024
Form CIFT-401W is a worksheet for organizations described in IRC Sections 401(a) or 501 to determine Louisiana-sourced unrelated business income and Louisiana income tax. It is attached to the completed 2024 Form CIFT-620 with applicable schedules.
Who files this form
Organizations described in Internal Revenue Code Sections 401(a) or 501 that have unrelated trade or business income and file federal Form 990-T must report their Louisiana-sourced unrelated business income on Form CIFT-620.
CIFT-401W helps determine the Louisiana-sourced unrelated business income to report. Attach the completed worksheet to your 2024 Form CIFT-620.
What you'll need
To complete the worksheet, have:
- Your LDR account number, the organization’s name as shown on Form CIFT-620, and the income taxable period covered.
- Federal Form 990-T, including the amount on Part I, Line 5.
- Your 2024 Form CIFT-620, including Schedules F and J.
- Schedule D if the unrelated business income comes from business both within and outside Louisiana, plus Schedules B and C if applicable.
Attach the completed worksheet and applicable schedules to Form CIFT-620 when filing.
How to file
- Enter federal net unrelated business income from Form 990-T, Part I, Line 5, on worksheet Line 1 and Form CIFT-620, Schedule F, Line 1.
- If the business is only within Louisiana, complete Schedule F and transfer Schedule F, Line 4, to Form CIFT-620, Line 1A. If the business is within and outside Louisiana, complete Schedules D and F, plus Schedules B and C if applicable. Transfer Schedule D, Line 31, to Form CIFT-620, Line 1A.
- Complete Form CIFT-620, Lines 1B through 1C1. Subtract Lines 1B and 1C1 from Line 1A. Enter the result on worksheet Line 2 and Form CIFT-620, Line 1D.
- Follow the instructions for Schedule J. Enter Schedule J, Line 4, on worksheet Line 3 and Form CIFT-620, Line 2.
- Finish Form CIFT-620 using its instructions. Attach this worksheet and applicable schedules to the completed 2024 return.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Including unrelated items: On this worksheet and Form CIFT-620, include only income and expenses related to producing unrelated business income.
- Overlooking the franchise tax reminder: Franchise tax computations on both forms are not required if the organization is not subject to Louisiana franchise tax. If it is not subject to franchise tax, use code 5 on Form CIFT-620, Line 7.
- Leaving out attachments: Attach the completed worksheet and applicable schedules to Form CIFT-620 when filing.
Questions people ask
Does federal tax-exempt status exempt all of the organization’s income from Louisiana tax?
No. The form explains that these organizations are not exempt from tax on Louisiana-sourced unrelated business income or income not included under IRC Sections 401(a) or 501. Such income must be reported on Form CIFT-620.
What federal amount starts the worksheet?
Use federal net unrelated business income from Form 990-T, Part I, Line 5. Enter it on worksheet Line 1 and Form CIFT-620, Schedule F, Line 1.
Is CIFT-401W a separate return?
The form describes CIFT-401W as a worksheet to help determine Louisiana-sourced unrelated business income. It instructs you to attach the completed worksheet to your 2024 Form CIFT-620.