Do you need to file a nonresident state return?
Do you need to file a nonresident state return? Generally, you’ll need to file a nonresident state return if you made money from sources in a state you don’t live in. Some examples are: Wages or income you earned while working in that state Out-of-state rental income, gambling winnings, or profits from property sales S…
Can the church pay student loans tax-free?
Can the church pay student loans tax-free? The Coronavirus Aid Relief and Economic Security Act (the “CARES Act”) provides a way for churches to provide both tuition, books, supplies, and student loan payments tax-free through January 1, 2026. The Coronavirus Aid Relief and Economic Security Act (the “CARES Act”) of IRC Section 127 allows churches to reimburse up to $5,250 per employee, per…
Commuting expenses deductible?
Commuting expenses deductible? You cannot deduct the costs of taking a bus, trolley, subway, or taxi or driving a car between your home and your main church or regular place of work. These costs are personal commuting expenses. You cannot deduct commuting expenses no matter how far your home is from your church or regular…
Nontaxable income for clergy?
Name update (September 2026): The Individual Coverage HRA (ICHRA) is now called the CHOICE Arrangement. It’s the same benefit with the same rules. Nontaxable income for clergy These are examples of sources of income that are non-taxable: • Qualified love gifts (person-to-person and within limits) Cannot be solicited Must be spontaneous in nature Must be…
What is Considered Income For Tax Purposes?
What is Considered Income For Tax Purposes? Tax season is right around the corner. Employers are preparing and sending out W2 forms to their employees and 1099 forms to their contractors. Individuals are receiving a wide variety of tax-related documents. A threshold issue for proper individual tax reporting is understanding what is considered taxable income….
Qualified Disaster Relief Payments
Qualified Disaster Relief Payments As the pandemic moves into a new phase and churches and offices are starting to resume normal operations, it may be time to revisit Internal Revenue Code (the Code) Section 139, an underutilized and often overlooked Code Section. It is an opportunity for churches to reimburse individuals for prior and ongoing…
Don’t Miss the Oct. 15 Tax Extension Deadline
Don’t miss the Oct. 15 Tax Extension Deadline Did you file an extension for your 2020 federal income tax return? If so, you have about 2-weeks remaining to file your individual return, as it is due on or before October 15, 2020. A tax extension gives you additional time to file but does is not…
Safeguarding Form 4361 – Opting out of Social Security
Safeguarding Form 4361 – Opting out of Social Security A minister who wishes to be exempt from social security/Medicare tax must file a Form 4361 with the IRS for approval. Before your application can be approved, the IRS must verify that you are aware of the grounds for exemption and that you want the exemption…
New Educators Guidelines – COVID-19 protective items
Educators can now deduct out-of-pocket expenses for COVID-19 protective items Eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. COVID-19 protective items include, but are not limited to: face masks; disinfectant for use against COVID-19; hand soap; hand sanitizer; disposable gloves; tape, paint, or chalk…
Reminder – Estimated payment Due on April 15th
Notice 2021-21, issued on March 29, 2021, does not alter April 15, 2021, deadline for estimated tax payments; these payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to…