Last week it was announced during a press conference that IRS would be extending the deadline for 1040 filings and providing some relief on payments. This week the IRS issued written guidance explaining what that means to taxpayers. The due date for all 1040 returns has been automatically extended from April 15th to July 15th….
Barring any last-minute changes, 1040 returns will be due April 15th. If you still need to turn in your documents, here are five quick tips to make things easier for your tax preparer: If a document does not have your name on it, write your name on it! Your preparer is probably receiving a mountain…
At a press conference on Tuesday, Treasury Secretary Steven Mnuchin announced that IRS will be pushing back the 1040 payment deadline by 90 days due to the impact of COVID19. Individual taxpayers will be able to defer payment on their 1040 return until July 15th with no penalty. As this plan was just announced on…
The Fair Labor Standards Act (FLSA) is a federal law that mandates minimum wage and overtime pay for many employees. This law was designed to protect employees by assuring that employers pay eligible employees at least minimum wage for all hours worked and overtime for any hours worked over 40 per week. Although few congregations…
There’s a little more than a month left before the April 15th deadline. If you aren’t able to file by April 15th, you can request a filing extension with the IRS (and possibly your state). While IRS has no problem with delaying your filing until October, many people forget that they still expect your payment…
The Housing Allowance is one of the best tax benefits currently available to clergy today. Clergy can use a housing allowance to exempt a portion of their wages from income taxes. This can be done from wages or from deferred wages that were placed into a 403(b) denominational pension. When you retire, you may be…
One of the best tax benefits currently available to clergy, the housing allowance, isn’t just limited to wages. Did you know that you can claim a housing allowance from your denominational pension distributions as well? When a minister retires and starts taking funds from their denominational pension, they can potentially receive the funds income-tax-free as…
If you have children, you may be the custodian on a savings or investment accounts in the name of your children. These accounts might generate interest or dividends. At the end of the year, how do you report the income and pay taxes on these accounts? Technically, any income resulting from these accounts belongs to…
Congressman Kevin McCarthy recently held a press conference with local pastors about his newly introduced bill, the Clergy Act. This bill would offer ministers – many of whom opted out of paying into Social Security in their youth – a two-year “open season” to effectively opt-in to Social Security. McCarthy released the following statement: “In…
If you are retired or nearing retirement, you may want to pay attention to the SECURE Act that went into effect January 1st of 2020. This act made a number of important changes to retirement account rules, including: Raising the minimum distribution age to 72 (Was previously 70 and a half) Removing the age limit…
