 What Clergy and Churches Need to Know The IRS has announced a significant change to Form 1099-NEC reporting requirements, which will impact churches, ministries, and clergy-related organizations starting in 2026. Under the OBBB Act, the threshold for issuing Form 1099-NEC will increase from $600 to $2,000, offering welcome relief to many small ministries and nonprofits….
Retirement planning is a vital part of financial stewardship, especially for clergy who often face unique challenges in managing income, housing allowances, and long-term savings. One of the most powerful tools available to clergy is the 403(b)(9) retirement plan—a tax-advantaged savings vehicle designed specifically for employees of churches, religious organizations, schools, and other nonprofits. What…
What should we include in a bereavement leave policy? Bereavement leave typically allows employees to take time off to grieve, make arrangements, or attend services following the death of a loved one. If you offer bereavement leave, we recommend having a policy that sets clear expectations and processes for requesting, approving, and using leave. Here…
We’ve had a great launch of the Kingdom Impact 5 Podcast in July and August. In under 5 minutes, the Kingdom Impact 5 podcast takes a deep dive into a topic to help your ministry stay compliant, confident, and financially strong. From IRS regulations and payroll best practices to bookkeeping tips and tax updates, we…
To make your first estimated tax payment by April 15th, follow these steps: Calculate Your Estimated Tax Liability Estimate Your Income: Project your income for the year, including wages, dividends, interest, and any other sources. Deductions and Credits: Estimate your deductions and credits to reduce your taxable income. Tax Rate: Apply the appropriate tax rate…
[Church Name] [Church Address] [City, State, ZIP Code] [Date] [Donor Name] [Donor Address] [City, State, ZIP Code] Dear [Donor Name], On behalf of [Church Name], I would like to extend our heartfelt gratitude for your generous donation of stock. Your support is invaluable to our mission and helps us continue our work in the community….
Handling the donation of stock for a church involves several important steps to ensure compliance, proper valuation, and acknowledgment. Here’s a comprehensive guide: Establish a Brokerage Account Open an Account: The church must establish a brokerage account in its name to receive and manage stock donations. Choose a Broker: Consider using a discount broker (e.g.,…
If the looming April 15 tax deadline has you stressed, take a deep breath—you have time and options. Every year, many clergy rush to file by the deadline, often missing key deductions, making costly errors, or settling for a hurried filing experience. However, here’s the truth: filing a tax extension can be a strategic advantage,…
Tithing, the practice of donating a portion of one’s income to a religious organization, is a common tradition in many faiths. While tithing fulfills spiritual obligations, it also has potential tax implications that can be beneficial for taxpayers. Here’s a detailed look at how tithing affects taxable income:Â Eligibility for Deduction Tithing can be tax-deductible…
Consulting a tax professional can be highly beneficial for pastors due to the unique and complex nature of clergy taxes. Here are some detailed reasons why pastors should consider seeking professional tax advice: Understanding Clergy-Specific Tax Rules: Dual Tax Status: Pastors often have a dual tax status, being treated as employees for federal income tax…
