What If You Can’t Afford to Pay Your Taxes? If you’re unable to pay your tax bill in full, the most important thing to know is this: you should still file your tax return on time. You can file your income tax return even if you don’t have the money to pay what’s owed. Once…
Don’t Forget: Estimated Tax Payments Are Due April 15 April 15 isn’t just the deadline for filing your tax return—it’s also an important date for estimated tax payments. The first estimated tax payment for the 2026 tax year is due on April 15, 2026, for individuals and most calendar‑year entities. If estimated taxes aren’t paid…
Protect Your Tax Identity: Apply for an IRS IP PIN One of the most effective ways to guard against tax‑related identity theft is by applying for an IRS Identity Protection Personal Identification Number (IP PIN). An IP PIN is a six‑digit number known only to you and the IRS, and it helps prevent someone else…
Can Deacons qualify for a housing allowance? Deacons can qualify for a housing allowance, but only if they meet the IRS definition of a “minister” for tax purposes. The IRS does not base eligibility on job titles (pastor, priest, bishop, deacon, etc.). Instead, it looks at whether the individual is ordained, licensed, or commissioned and…
Can a nonexempt employee be paid a salary? Yes, a nonexempt employee can be paid on a salary basis rather than by the hour. However, this arrangement can be challenging to manage in practice. Paying a nonexempt staff member a set salary does not make them exempt from overtime. They must still receive overtime pay…
Home Office Deduction and the Clergy Housing Allowance: How They Work Together Many ministers ask whether they can claim a home office deduction while also benefiting from a clergy housing allowance. The good news is that it is possible to claim both, provided the rules for each are met and the two benefits are coordinated…
Housing allowance policy for your employee handbook Below is a Housing Allowance Policy suitable for inclusion in a church or ministry Employee Handbook. It is written in neutral language and reflects IRS requirements found in Section 107 of the Internal Revenue Code (no external citations needed for policy documents). Housing Allowance Policy (For Ministers and…
Can I roll my denomination’s investment plan to an IRA? Under IRS rules, you cannot receive a housing allowance designation from an IRA, even if the funds originally came from ministerial compensation. Housing allowance treatment is only permitted when the retirement plan itself is a “church plan,” typically a 403(b)(9), and the designating body is…
Were you age 73 or older during 2025? Required Minimum Distributions (RMDs) apply to traditional IRAs and most employer‑sponsored retirement plans once a participant reaches age 73. In the first year RMDs are required, the distribution does not need to be taken by December 31. Instead, the initial RMD must be withdrawn no later than…
2026 Housing Allowance Guide Now Available The Housing Allowance Exclusion permits clergy to set aside a portion of their compensation specifically for housing expenses, shielding that amount from federal income tax. By reducing taxable income, clergy can significantly lower their overall tax burden. Although this exclusion is one of the most valuable tax advantages available to ministers,…
