IRS Updates Mileage Rates for 2013
The Internal Revenue Service has issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56.5 cents per…
Social Security Tax Increase Starting January 1, 2013
Over the past two years, there has been a “payroll tax holiday” in effect. This reduced the employee’s share of Social Security from 6.2% to 4.2%. This “payroll tax holiday” is scheduled to expire on December 31, 2012. Non-clergy employees will have an additional 2% of Social Security tax withheld from their paychecks starting on…
Appeals Court Rejects Multiple Housing Allowance Decision
On Wednesday February 8, 2012, the Eleventh Circuit Court of Appeals in Atlanta overturned a decision made by the United State Tax Court(Commissioner vs. Driscoll) regarding the ability for a clergy to claim more than one home as a housing allowance tax exclusion. In May 2010, a United State Tax Court finalized a ruling, from…
IRS Updates 2012 Business and Ministry Mileage Rates
The Internal Revenue Service has issued its 2012 optional standard mileage rates that can be used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, the standard mileage rates for the use of a car, van, pickup or panel truck will be 55.5 cents per…
Another Lawsuit Threatens the Clergy Housing Allowance
A lawsuit filed on September 12, 2011 threatens the constitutionality of sections 107 and 265(1)(6) of the federal tax code, which establishes the housing allowance for ministers. The Atheist group (Freedom from Religion Foundation) filing the lawsuit asserts the unique benefit set aside especially for “ministers of the gospel” is a violation of separation of…
How the American Jobs Act Will Affect Clergy & Churches
How the “American Jobs Act” Will Affect Church Employees: At the beginning of 2010, a “payroll tax holiday” was passed. Employees normally pay 6.2% on their first $106,800 of wages into Social Security, however, this “tax holiday” decreased that amount by 2%. This allowed employees to pay 4.2% of wages into Social Security instead of…
Back-to-School Tips for Students and Parents Paying College Expenses
Whether you’re a recent graduate going to college for the first time or a returning student, it will soon be time to get to campus – and payment deadlines for tuition and other fees are not far behind. Clergy Financial Resources reminds students or parents paying such expenses to keep receipts and to be aware…
Lawsuit Challenging Clergy Housing Allowance Dropped
In 2009, the atheist group ” Freedom from Religion Foundation” filed a lawsuit challenging the constitutionality of Sections 107 and 265(1)(6) of the federal tax code, which establishes the housing allowance for ministers. Their argument stated that the unique benefit set aside for “ministers of the gospel” is a violation of the separation of church…
Department of Justice Appeals “Multiple Home” Housing Allowance Ruling
On May 24, 2011, the United States Department of Justice appealed the tax court decision made in the Philip Driscoll housing allowance case. In December 2010, the United States Tax Court ruled that clergy could use the parsonage allowance exclusion for two homes as long as they are both used exclusively as personal residences. Related…
President Signs Form 1099 Repeal Legislation – How It Will Affect Churches
On April 14, President Obama signed legislation repealing the Form 1099 filing requirements that were imposed under the Small Business Jobs Act and the Pension Protection and Affordable Care Act. The rules would have required churches to report any purchases of goods or services of more than $600 a year from another vendor to the…
