Your Form W-4 determines how much federal income tax is withheld from your paycheck. Keeping this form up to date ensures that your tax withholding matches your current situation—helping you avoid surprises at tax time. Several major life events can significantly impact your tax liability. If any of the following apply to you, it’s a…
Churches must follow IRS rules when handling year-end giving. This includes issuing donor receipts by January 31, ensuring contributions are properly documented, acknowledging gifts over $250 in writing, and maintaining accurate records for compliance and transparency Contribution Statements Deadline: Churches must issue annual giving statements to donors by January 31 of the following year. These…
Reporting Flexible Spending Account (FSA) contributions on a W-2 depends on the type of FSA and who made the contributions. Here’s a breakdown: Where to Report FSA Contributions on Form W-2 Dependent Care FSA Box 10: Report the total amount of dependent care benefits provided to the employee, including: Amounts the employee elected to contribute…
The Match Game for 403(b)(9) Retirement Plans The Match Game show started on December 31, 1962. The premise of the show was simple. The contestant with the most matching answers with the celebrity panelists won the game and moved on to the “big money round”. Contestant or celebrity, there is another match game that clergy…
Housing Allowance Checklist for Clergy and Churches Board Approval Ministers may exclude a designated portion of their income as a housing allowance from federal income taxes—provided it compensates ministerial services. The church board (or governing body) must determine eligibility and formally approve the allowance before the calendar year begins or prior to the minister’s start…
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…
