Is your Gift Taxable?

If you’ve given money or property to someone as a gift, you may owe federal gift tax, but in many cases, you will not. For example, there is usually no tax if you make a gift to your spouse or a charity. If you make a gift to someone else, the gift tax usually does…

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Advance Child Tax Credit Payment Online Tools

The IRS just launched new online tools designed to help families manage and monitor the advance monthly child tax credit (CTC) payments. The first payment will be made on July 15, 2021. The tools include: Child Tax Credit Eligibility Assistant: allows families to answer a series of questions to quickly determine whether they qualify for…

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Do you need a cell phone policy?

According to a variety of surveys, close to 80 percent of the churches said that employees couldn’t do their job efficiently without cell phones. Despite being an integral part of daily work, many churches still do not have an effective cell phone reimbursement policy in place.  With constant updates and advancements in cell phone technology,…

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Can you prohibit personal phone?

Q: Employees are spending a lot of time on their phones (scrolling social media, browsing the internet, listening to music or podcasts). Can we prohibit personal phone use during work hours? A: Yes, you can limit or prohibit the use of personal devices during work hours. Employees can be expected to give their undivided attention…

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Are Clergy Subject to Self-employment tax

Clergy are dual-status employees and are not eligible to have FICA taxes withheld from their church compensation. In lieu of FICA taxes, clergy are subject to self-employment tax (SECA) which is calculated and paid on their tax return. Reimbursements from an employer of SECA are taxable as wages. Note, however, that even though clergy pay SECA…

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Should I Opt-Out of the Advance Child Tax Credit

Child Tax Advance Credit Update Recently many news outlets have been reporting a new “stimulus payment” coming in July. This has caused some confusion. There are no current plans for a fourth economic impact payment (EIP), but instead, the press is calling the upcoming advance child tax credit (CTC) payments a “stimulus payment.” Earlier this…

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Are Churches Exempt From All Filing Requirements

Filing Church Information Updates  Though most churches are exempt from filing annual federal tax returns, there are other filings that are sometimes overlooked by churches. Many states require any incorporated entity, including a church, to file a periodic information update with the Secretary of State or other agency. Failure to file this update in a…

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New law extends COVID tax credit for Churches

The Employee Retention Credit (ERC) is a refundable payroll tax credit for up to $5,000 per employee in 2020 and $28,000 in 2021. This temporary credit was enacted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and amended by the Consolidated Appropriations Act of 2021 (CAA). On March 11, 2021, the American Rescue…

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IRS Refund Delays

Delayed Refunds Due to RRC Discrepancy Many clergy are still waiting on refunds when they filed their tax return in February. Some tax returns take longer to process than others, including when a return: Includes errors such as an incorrect recovery rebate credit (RRC) amount Was filed with missing information Is affected by identity theft…

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Paycheck Protection Loan Forgiveness

Paycheck Protection Loan Forgiveness Many churches applied for and received a Paycheck Protection Program (“PPP”) Loan through the Small Business Administration to assist in retaining employees and paying other expenses during the COVID-19 pandemic. It is important to follow the appropriate steps in order to ensure that the loan is forgiven to avoid paying interest…

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