New Auto Loan Interest Deduction
The New Auto Loan Interest Deduction for 2025 Beginning with the 2025 tax year, millions of Americans will encounter one of the most notable tax changes in decades: the new federal Auto Loan Interest Deduction, created under the OBBBA. This new provision offers a potentially valuable deduction for qualifying taxpayers—yet it comes with strict rules,…
2026 Mileage Rates Announced
If you use your personal vehicle for ministry, business, charitable work, medical appointments, or certain moving situations, you may qualify for a mileage deduction on your tax return. The IRS allows taxpayers to deduct vehicle expenses when the driving is directly connected to specific qualifying purposes, and mileage is often the simplest way to calculate…
How tithing can reduce your taxable income
Tithing, the practice of donating a portion of one’s income to a religious organization, is a common tradition in many faiths. While tithing fulfills spiritual obligations, it also has potential tax implications that can be beneficial for taxpayers. Here’s a detailed look at how tithing affects taxable income: Eligibility for Deduction Tithing can be tax-deductible…
What Are Credits and Deductions For Tax Purposes?
What Are Credits and Deductions For Tax Purposes? Tax documents are currently arriving in mailboxes and inboxes, reminding us all that tax season is rapidly approaching. A recent blog article discussed the subject of what is income for tax purposes. This article will give a brief and broad overview of what credits and deductions are…
Special $300 deduction for Charitable Donations in 2020
IRS Commissioner Chuck Rettig recently issued a reminder that the IRS has “a new provision that allows for up to $300 in cash donations to qualifying organizations to be deducted from income. We encourage people to explore this option to help deserving tax-exempt organizations – and the people and causes they serve.” Ordinarily, you can…
Can I deduct the mortgage for a home that is being constructed? Does it qualify for the housing allowance?
The IRS allows for taxpayers to deduct all of the interest they pay on a construction loan within the 24 months before the home is completed. (See Publication 936 https://www.irs.gov/publications/p936) There are some rules in order to qualify for the mortgage interest deduction: You can treat a home under construction as a qualified home for…
How much can I give to charity this year?
A frequent question asked around the holidays is “How much can I give to charity this year?” While IRS does not limit how much you can give, they do place limitations on the tax benefits you can receive for such donations. Here are some quick facts about the amount of charitable donations you can deduct:…
Cell Phone Deductions for Ministers
If you are a minister, chances are you spend a lot of time on the phone, especially during the Pandemic. Fortunately, ministers can deduct these expenses on their schedule SE, but there are several things you have to keep in mind. First, you have to be subject to self-employment tax in order to take the…
I use a computer for ministry work and personal purposes, can I deduct it?
Many ministers purchase computers to use for their ministry work but also end up using them for home e-mails or other personal purposes. Are you able to deduct the purchase of a computer that is used both for work and for home? The answer is yes, a portion of it can be deductible. When deducting…
Best practices for deducting meals
Clergy can deduct the costs of ministry-related meals against their self-employment taxes, but not everyone knows the best practices for deducting meals. Here are some quick tips on deducting meals: Only deduct meals that are purchased for ministry purposes. If you are just buying a meal for yourself, that doesn’t count for a deduction. If…
