FAQ for Clergy: What is the estimated tax penalty?
A couple questions that CFR gets every tax season are “Why am I getting assessed an estimated tax penalty?” and “What is an estimated tax penalty?” The US has a “pay as you go” tax system. Instead of paying your taxes in a lump sum, the IRS expects payments throughout the year. Most W-2 wage…
Cyber Security Tips: E-mail
When working with taxes, financial planning and retirement, you often have to provide sensitive information. You don’t want your social security number or finances released to the public, so it is important to take some precautions. While e-mail is a fast and easy way to send information, it’s not as secure as you may think….
IRS Issues Basic Guidance on Payroll Tax Deferral for Churches
The IRS has issued Notice 2020-65 deferring the withholding and deposit of the employee’s share of Social Security (OASDI) taxes on applicable wages. Specifically, the deferral applies to applicable wages paid on a pay date between September 1, 2020, and December 31, 2020. The availability of deferral is based on the date the employee is paid….
Can I take out a home equity loan and use that as an expense for the housing allowance?
Answer: Yes, you can use a new home equity loan for your housing allowance, but with some restrictions. The Internal Revenue Service allows ministers to use home equity loans as a housing expense, but only if the loan is used for direct housing-related expenses (i.e. for maintenance or the purchase of a home). If you…
If I pay off my mortgage, how does that affect the housing allowance?
Ministers who live in the same home for a long time may reach the point where they are paying off their mortgage. At this point, many ministers wonder how not having a mortgage will affect their housing allowance. Fortunately, you can still qualify for the housing allowance if you have paid off your mortgage. However,…
