Dues versus Contributions
Ministers often pay a small annual renewal fee to maintain their credentials, which constitutes a deductible expense. However, ministers’ contributions to the church are not deductible as business expenses. Many may argue that they are expected to donate generously to the church as part of their employment. This is not sufficient to convert charitable contributions…
Join Us Today – Turn HUNGER into HOPE
Clergy Financial Resources has partnered with Feed My Starving Children which provides life-saving meals to people around the world. Join us today to Turn HUNGER into HOPE. Each of us can do something. Together we can end hunger, in Jesus’ name. As a Christian non-profit organization, Feed My Starving Children is called to feed God’s…
Tax Deadline Approaching
TAX DEADLINE APPROACHING In order to guarantee completion of your tax return by April, 17th, 2018, all of your tax material will need to be in our office by March 15th, 2018. Each year, we publish a Clergy Tax Organizer, which is designed to be used as a learning tool and reference guide. This organizer will assist…
QuickBooks for Churches
Bookkeeping for churches can be quite different than for-profit businesses, and the other guides available cover either QuickBooks or church accounting, not both.  Lisa London, The Accountant Beside You, walks you through QuickBooks for your church from start to finish, always with examples, terminology, and understanding of what a busy church administrator needs to know in…
Deduct It! – Ministers Deductions
A minister who is classified as an employee may claim his or her unreimbursed expenses only as a miscellaneous itemized deduction on Form 1040 Schedule A. These expenses are deductible only if, and to the extent, they and any other miscellaneous itemized deductions exceed 2% of the minister’s adjusted gross income (AGI).  A few common…
Long-term disability: Pre-tax or after-tax?
Long-term disability (LTD) insurance provides you with income if you become disabled and are unable to work. Although your church may pay the full premium for this coverage, you can choose whether the premium is deducted from your pay before or after taxes. Â Important tax considerations are as follows: If you choose to pay for…
Are You Eligible to Make Extra 403(B) Contributions?
The IRS just announced their pension plan contribution limits for 2018. The contribution limit for 403(b)s has been increased by $500 to $18,500. IRA contribution limits have not changed in half a decade and will be $5,500 once again. If you’re over 50, you are eligible to make catch-up contributions. You can put an additional…
Health Reimbursement Arrangement for Churches
A QSEHRA allows small churches who do not offer group health insurance to their employees to provide money to employees on a tax-free basis; the money can be used to pay for individual health insurance policies and to reimburse employees for certain medical expenses. To offer a QSEHRA, a small church must have fewer than…
Clergy Tax Deductions
You may be able to reduce your taxes by deducting unreimbursed, ministry-related expenses. These expenses may be claimed as miscellaneous Itemized Deductions on Schedule A. You should keep your expenses separated by those associated with your wages and those associated with your self-employment income, and you should keep receipts to substantiate these expenses. The following…
The Importance of Reimbursing Ministerial Expenses
Under 2017 law, it was a significant income tax advantage for a minister to have the employing church reimburse business expenses related to the ministry of the church. The reimbursements needed to meet the requirements of an accountable expense reimbursement plan. Simply stated, a tax-free expense reimbursement put an entire dollar back in the minister’s…
