Ministry Mileage

Ministry Mileage Documentation of expenses is vital to an acceptable accountable reimbursement plan. Pre-Covid, ministry mileage driven is generally the minister’s greatest expense. Some ministers have contended that every mile they travel is in the furtherance of their ministry – and thus reimbursable. Their contention is based upon the fact that they never stop being a…

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Ministry Expense Reimbursements

Church employees may incur a number of legitimate business expenses in the completion of their duties.  These expenses may include travel costs, mileage driven, business meals, subscriptions to ministry periodicals, home office equipment, education related to business, mobile phone charges, and entertainment costs. While the precise details of what does and does not qualify as…

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Is it better to have an accountable or a non-accountable reimbursement plan?

If you are working as a pastor or minister, you probably have some expenses. They may be things like religious supplies, specialty clothing, or auto expenses. Some churches are able to reimburse these expenses, but take care; the way you structure these reimbursements has a big impact on your income taxes. There are two basic…

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Accountable versus Non-Accountable Reimbursement Plans

If your Church helps to pay your clergy expenses, how they pay you makes a big difference when it comes to filing your 1040 tax return. Under an “accountable” plan, the Church only pays your exact expense. Either you submit receipts to them and they pay you the amount of the expense, or you use…

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Accountable versus Non-Accountable Plans

If your Church is paying for your ministry-related expenses, it is important to know if you are being paid under an Accountable plan or a Non-Accountable plan. It has a huge impact on your 1040 taxes. Under an Accountable plan, you are reimbursed for expenses. If you go out and buy a $10 book, you…

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8 questions about employee expense reimbursements

The compliance risks of mishandling employee expense reimbursements have spiked in recent years. And the IRS is in the middle of a wide-ranging audit crackdown on employment-tax issues. Have you reviewed your expense reimbursement policy recently to determine if it adheres to the Internal Revenue Service (IRS) guidelines? Now is a great time to review your policy…

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Can we pay for gym membership for church staff?

You can, but it would need to be considered as extra taxable income. Gym membership dues are considered a personal expense. There is no tax law that excludes employee or employer paid third-party membership dues from taxable income. The only time the value of membership dues are excludable from income is if the employer provides…

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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…

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IRS Releases 2019 Standard Mileage Rates

The Internal Revenue Service (IRS) released the 2019 standard mileage rates. Beginning January 1, 2019, the standard mileage rates for the use of a car (vans, pickups or panel trucks) will be: 58 cents per mile for ministry or business miles driven, up from 54.5 cents for 2018 20 cents per mile driven for medical, up from…

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Guide to Minister’s Compensation

You may find it helpful to begin by considering the goals of a compensation package. A church should provide its staff with adequate income so that they can fulfill their roles without undue concern about current and future financial needs. Freedom from financial anxiety lets the minister focus on his or her service. It also helps your church…

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