Can I refuse to take my salary?
In difficult economic times, Churches must make tough decisions about what bills they can afford. Sometimes Ministers refuse their salary in order help the Church. If you refuse to take your full salary for the year, do you still need to report it as taxable income? The answer, like all good tax questions, is “it…
Is It Time for A New Clergy Tax Advisor?
Selecting a tax advisor or accounting firm may seem easy at first. There are two types of professional services within our industry. The first type is called a “Generalist”, which prepares any and all returns for the public at large. They may have a limited number of clergy returns or none at all. They do…
Extension Effects on IRA Contributions and Estimated Payments
In addition to changing the filing and payment deadlines for your 1040, the new extensions also impact IRA contributions and estimated payments. Normally for IRA contributions, you can claim credit for contributions made before the April 15th filing due date. For example, if you paid $500 into an IRA on March 21st of 2020, you…
IRS issues guidance on filing and paying extensions
Last week it was announced during a press conference that IRS would be extending the deadline for 1040 filings and providing some relief on payments. This week the IRS issued written guidance explaining what that means to taxpayers. The due date for all 1040 returns has been automatically extended from April 15th to July 15th….
Less than 1 Month to 1040 Filing Deadline!
Barring any last-minute changes, 1040 returns will be due April 15th. If you still need to turn in your documents, here are five quick tips to make things easier for your tax preparer: If a document does not have your name on it, write your name on it! Your preparer is probably receiving a mountain…
Payment Deadline Extended to July 15, 2020
At a press conference on Tuesday, Treasury Secretary Steven Mnuchin announced that IRS will be pushing back the 1040 payment deadline by 90 days due to the impact of COVID19. Individual taxpayers will be able to defer payment on their 1040 return until July 15th with no penalty. As this plan was just announced on…
Extensions to file are not extensions to pay
There’s a little more than a month left before the April 15th deadline. If you aren’t able to file by April 15th, you can request a filing extension with the IRS (and possibly your state). While IRS has no problem with delaying your filing until October, many people forget that they still expect your payment…
SECURE Act removes limit on age for retirement contributions
If you are retired or nearing retirement, you may want to pay attention to the SECURE Act that went into effect January 1st of 2020. This act made a number of important changes to retirement account rules, including: Raising the minimum distribution age to 72 (Was previously 70 and a half) Removing the age limit…
Two months until 1040 tax deadline…
Valentine’s Day is almost here. While most people are thinking of flowers and chocolates, your friendly, neighborhood tax preparer is already thinking about April 15th. IRS e-filing has officially opened and is now accepted returns. More importantly, official tax documents like W-2s and 1098 forms should have been received by now. The majority of taxpayers…
What is the difference between standard and itemized deduction
It’s a good idea for people to find out if they should file using the standard deduction or itemize their deductions. Deductions reduce the amount of taxable income when filing a federal income tax return. In other words, they can reduce the amount of tax someone owes. Individuals should understand they have a choice of…
