The IRS allows for taxpayers to deduct all of the interest they pay on a construction loan within the 24 months before the home is completed. (See Publication 936 https://www.irs.gov/publications/p936) There are some rules in order to qualify for the mortgage interest deduction: You can treat a home under construction as a qualified home for…
The case of the extra paycheck It happens every 11 or 12 years — and 2020 is one of those years. Depending on which day of the week paychecks are handed out, employees who are paid on a weekly or biweekly basis may be receiving an extra check this month. With a biweekly payroll, an…
Looking forward to the next year, many people are wondering if their taxes are going to go up. Fortunately, the tax brackets for 2021 have already been published, so we have the answer to this question. For the vast majority of Americans, there will be no change or even a slight decrease in taxes if…
To you and yours, no matter where you are, no matter what kind of holiday traditions you have, no matter if you are meeting with family or avoiding gatherings this year, Clergy Financial Resources wishes a happy and safe Thanksgiving!
A frequent question asked around the holidays is “How much can I give to charity this year?” While IRS does not limit how much you can give, they do place limitations on the tax benefits you can receive for such donations. Here are some quick facts about the amount of charitable donations you can deduct:…
As COVID-19 infection rates continue to climb, it’s imperative that churches respond quickly when an employee is diagnosed. Here are the steps employers should take: Notify Employees Employees should be notified of potential exposure in the workplace, but they should not be told who is sick. Employees won’t like that they can’t gauge their own…
The Health Reimbursement Arrangement (HRA) model has made it possible for more churches to provide health care benefits for their employees with complete control of the costs and provide a pre-tax benefit to their employers. There are multiple HRA types to choose from, such as the One-Person Health Reimbursement Arrangements (HRA), Qualified Small Employer Health Reimbursement Arrangement…
If you haven’t switched positions in a while, you may be surprised to find that the form W-4 has changed drastically since you changed jobs. IRS changed the form to match changes in tax law, and all employees first paid after 2019 will have to use the new form (for frequently asked questions about the…
One of the most common questions about tax returns is “Where’s my refund?” This is no surprise, given the impact of 2020 pandemic on IRS staffing. With the holidays coming and expenses piling up, it can be frustrating waiting for a response. Here are some quick tips for checking on your IRS refund: There are…
As another year comes to a close, there are many important things that need to be wrapped up before the end of the year. For your church, your to-do list must include year-end payroll duties. Beginning with the 2020 tax year, the IRS will require churches to report nonemployee compensation on the new Form 1099-NEC…
