Over the past two years, there has been a “payroll tax holiday” in effect. This reduced the employee’s share of Social Security from 6.2% to 4.2%. This “payroll tax holiday” is scheduled to expire on December 31, 2012. Non-clergy employees will have an additional 2% of Social Security tax withheld from their paychecks starting on…
How much money does the IRC 107(clergy housing allowance/parsonage tax exclusion) actually save clergy? After running a few scenarios, the outcome may surprise you. In each scenario, we calculated the amount of tax paid by the clergy in two ways. First, their taxes are calculated as if the housing allowance/parsonage exclusion was eliminated(secular employee). This…
Make sure your church is in compliance with current payroll laws. Clergy Financial Resources payrolls service now includes a “year-to-date” payroll audit. During our audit, we will review each employee’s compensation to to ensure that everyone is being paid in accordance to Federal tax laws. Clergy Financial Resources is the leading payroll provider for churches….
Most working parents are well aware they get a tax break to help cover the costs of sending their children to day care. But some parents overlook the tax advantage of summer day camp costs. During school vacations, many parents turn to these supervised programs to provide child care while they work. Overnight camps don’t…
WASHINGTON — Refunds totaling more than $1 billion may be waiting for one million people who did not file a federal income tax return for 2008, the Internal Revenue Service announced today. However, to collect the money, a return for 2008 must be filed with the IRS no later than Tuesday, April 17, 2012. The…
Your search for new work in the ministry must be in the same field in which you’re currently or were formerly employed. Seminary graduates are out of luck. The costs you incur in getting your first job aren’t deductible, because the tax law only allows you to write off expenses incurred in searching for another…
On Wednesday February 8, 2012, the Eleventh Circuit Court of Appeals in Atlanta overturned a decision made by the United State Tax Court(Commissioner vs. Driscoll) regarding the ability for a clergy to claim more than one home as a housing allowance tax exclusion. In May 2010, a United State Tax Court finalized a ruling, from…
When you get your 2011 W-2, you might notice some new information on the form. Box 12 is where the church will report the cost of your group health insurance coverage. This amount is both the amount the church pays as well as the premiums paid via payroll deductions. The amount, which will be designated…
Statements are on the way from employers, banks, stockbrokers and other institutions and agencies that were involved in taxpayers’ financial lives last year. Each of these groups has, by law, until Jan. 31 to get their annual tax statements in the mail to you. Many taxpayers now receive these documents electronically. So be sure to…
Your kids can be helpful at tax time. That doesn’t mean they’ll sort your tax receipts or refill your coffee, but those charming children may help you qualify for some valuable tax benefits. Here are 10 things Clergy Financial Resources wants parents to consider when filing their taxes this year. 1. Dependents In most cases,…
