HSA vs. Itemized Medical Deductions: Which Offers More Benefit?
QUESTION: Is there an advantage to setting up on HSA and contributing post tax dollars to it and deducting on my tax return? Versus simply tracking my medical expenses and deducting them without the HSA? ANSWER: There is a significant advantage to using a Health Savings Account (HSA), even if you contribute with post-tax dollars…
Why You Should Update Your W-4
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…
Year-End Giving Rules for Churches
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…
Your Guide to FSA Contributions
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…
Matching Contributions: The 403(b)(9) Advantage
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…
Guide to Housing Allowance Compliance
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…
Kingdom Impact 5 Podcast – October Recap
Kingdom Impact 5 Podcast released two must-hear episodes in October about housing allowance. 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 break down…
Kingdom Impact 5 Podcast –September Recap
Two informative episodes of the Kingdom Impact 5 Podcast dropped in September. 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 break down what…
New $2,000 1099-NEC Filing Threshold
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….
Every Clergy Should Consider a 403(b)(9) Plan
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…
