Can the housing allowance resolution be amended mid-year?
The housing allowance resolution can be adopted or amended at any time during the year. However, it can only be applied prospectively, not retroactively. It is important for the housing allowance resolution to be adopted by the church council prior to each calendar year (or prior to the start date), which would accurately reflect the…
Complicated Nanny Taxes
Employing a nanny or an elder-care giver may seem like a simple proposition, but in the eyes of the IRS it isn’t. Is it the your responsibility as a home-care employer to report workers’ earnings to the IRS? Should the worker receive a 1099 tax form or a W-2? Is he or she an employee or…
Keeping Data Safe in Tax Season (and Year Round)
Tax season is in full swing, which means we are collaborating with our clients everyday. For many, the tool of choice for sharing information electronically will be e-mail. It is quick, easy and everyone has it. However, when relying on e-mail to share personal information such as Social Security numbers, financial statements and 1098 forms, individuals are putting…
Are Clergy Eligible For Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. For more details click the link below: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service#qualifying-employment
How does the IRS decide whether a taxpayer is a Minister for Tax Purposes?
The IRS considers individual facts and circumstances to decide if a taxpayer is a Minister for Tax Purposes. Court cases and practices of different denominations have influenced IRS decisions. These five questions will help determine if a person is a Minister for Tax Purposes: Is the person ordained, licensed or commissioned? Does the person administer…
When Paying the IRS, Handle Checks With Care
Always provide the reason for the payment, the form number, and tax year on the front of the check – for instance, “balance due on 2015 Form 1040” or “2016 estimated payment.” Also include your daytime telephone number and Social Security number (joint filers should enter the number shown first on their return). Writing separate…
How Do I Get a Copy of a Social Security Earnings Report?
In the past, the Social Security Administration sent an annual statement of your earnings to you by mail. In 2011, the administration discontinued this service to workers younger than age 60. However, you can still access a basic earnings report for free online or request one by mail. A basic report lists your combined earnings…
Best Practices for Churches with 1099 Individuals
IRS Form 1099 reports to the Federal government various types of taxable income paid to contractors and vendors. There are versions of the 1099 to report payments for services as well as interest, dividends, and real estate sale proceeds. This form is issued by churches to guest speakers, pulpit supply, etc., who provide services in…
The True Cost of Online Tax Software
The research is in. You can get a larger tax refund by using a Clergy Tax Advisor. The initial price of tax software ranges from $29.95 to $104.99. While that doesn’t sound expensive, it’s a small part of the total cost. The true cost of tax software is more than just the price you pay…
7 Steps to Avoid a Tax Audit
One of the most dreaded outcomes of filing your taxes is receiving notification that the Internal Revenue Service would like to administer a tax audit on you. In the simplest terms, a tax audit is an examination of your tax returns to verify that your income and deductions are accurate. The IRS examines your tax…
