Using Plastic to Pay Taxes?
Using your credit card to pay your IRS tab at authorized Web sites, such as www.payusatax.com and www.pay1040.com, triggers a charge of up to 2.35% on top of your payment. If your tax bill is $4,000, for example, that’s an additional $94. How to avoid these fees: These vendors are passing along the credit-card processing…
Taxable or Non-Taxable Clergy Income?
Generally, most income you receive is considered taxable but there are situations when certain types of income are partially taxed or not taxed at all. All sources of income are fully taxable and must be included in your income unless it is specifically excluded by law. To help clergy understand the differences between taxable and…
Missing a W-2? Here’s What To Do….
Ministers working for a church or church agency should receive a Form W-2 by January 31, 2011. Ministers who report their federal income taxes as self-employed on Form 1099, may face a significant risk of additional taxes and penalties, if they are audited and reclassified as employees by the IRS. Before you file your 2010…
Am I allowed to deduct a fundraiser as a charitable contribution?
The topic of today’s post comes from a reader. Remember, if there’s a tax topic you’d like to see covered in an upcoming edition of the Clergy Tax Law Blog. E-mail your topic to our office and it may be included in an upcoming edition. Dear Clergy Financial, Just a question on deducting charitable donations. …
Top 10 Question of a New Call
The proposed salary package will normally represent the previous pastor’s salary package or the guidelines set by your organization. 1- Does the church provide a social security allowance? 15.3% or 7.65% of salary and housing. 2- Does the church provide for the supplemental medical insurance? 3-Does the church provide a 100% professional accountable reimbursement plan?…
Who is a minister for federal tax purposes?
Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. They are given the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances or sacraments according to the prescribed tenets and practices of that church or denomination. If a church or denomination ordains…
Clergy Housing Allowance: How to determine the Fair Rental Value of my residence and furnishings?
In general, the fair rental value of the property is a question of facts and circumstances based on the local real estate market. If the pastor rents his or her home, the amount of the rent would be presumptive evidence of the fair rental value. Obtain the current fair rental value of your home from…
Can Student Clergy Receive a Housing Allowance?
The housing allowance exclusion is available only for qualified “ministers of the gospel.” The term “minister of the gospel” includes ministers, priests, and rabbis, i.e., those who have been ordained, commissioned or licensed by a church and who perform certain duties or services. These duties or services generally include the performance of sacerdotal functions, the…
Clergy Chartible Contributions FAQ’s
We are always encouraging people to volunteer their time to help their church or other nonprofit organizations. Shouldn’t people who do volunteer work be provided with a tax deduction to compensate them for their donation of time?
Clergy Love Gifts
Are “love offerings” to clergy always taxable income?
