Donating your RMD to Charity
When you reach 70 ½ years old, you must start taking Required Minimum Distributions (or RMDs) from your IRA. This can’t be helped… but did you know that you could donate your RMD to charity instead of receiving the income? IRS allows for an otherwise taxable distribution from an IRA (other than an ongoing SEP…
Documenting Donations
Charitable donations through your Church or through other non-profit organizations can be a significant portion of your deductions on Schedule A. It’s important to make sure that you are documenting your donations the correct way, otherwise an IRS examination could disallow your deduction! For any donations, whether they are cash or non-cash items, you should…
How Should I Get Reimbursed?
While working for a Church, you may have to pay some expenses out of your own pocket. This could be things like paying for gas while you drive to a distant location, or paying for office supplies, or paying for laundering ceremonial garments. Regardless of the expense, when you get reimbursed by your Church, you…
How Long Do I Have to Keep This Tax Stuff?
When you file your taxes, you should be retaining a copy of the tax return and all of the supporting documents to prove your income and expenses. But after five or ten years of filing tax returns, the amount of paper you have to keep can add up. Add all of the other important documents…
Moving Ministries?
A new Call can be exciting, but the logistics of moving and setting up in a new location can stressful, even before thinking about your taxes. Here are a few things to consider when moving to a new location. Moving Expenses are not deductible Regardless of whether your Ministry pays you or pays the movers…
Take Care, Don’t Overshare!
When most people imagine an identity thief, they imagine a young, bespectacled hacker, hunched over a computer while typing in computer commands, possibly wearing a black turtleneck. In reality, most private data theft is remarkably low-tech. Private data theft usually happens because the victim shares valuable information with the thief. Very little “hacking” is actually…
Donating the Right Way
Many of us donate our hard-earned time and money to charitable organizations and causes, but there is a right way and a wrong way to donate when it comes to your tax return. One mistake is donating to unqualified organizations. While donating directly to individuals can help them quickly, it won’t get you a deduction…
“I can’t afford to pay my IRS installment agreement, now what do I do?”
Life is complicated. Sometimes despite making every correct decision, we can still fall behind. Very few people actually intend to fall behind on their 1040 taxes, and even less intend to default their installment agreements. If you find yourself in a difficult situation where you can’t make your monthly IRS installment agreement, don’t panic. You…
Home Ownership Deductions Limited for Itemized Returns in 2018
For those who continue to itemize their deductions, the Tax Cuts and Jobs Act (or TCJA) has installed several limits on deductions for home owners. First, taxpayers can only deduct mortgage interest resulting from up to $750,000 of debt ($375,000 for those filing single or married filing separately). IRS Publication 936 summarizes the limitations (https://www.irs.gov/publications/p936#en_US_2018_publink1000229991),…
Do Members of the Clergy Qualify for Public Service Loan Forgiveness? With Restrictions.
Public Service Loan Forgiveness (or PSLF) is a program that allows certain individuals to get the remainder of their direct student loans discharged. Sounds great, right? Of course, there are a lot of restrictions. In order to qualify, you must Work full-time for a government agency or non-profit Have direct loans Repay your loans on…
