When are credit cards purchases deductible
Credit card statements are necessary to prepare your taxes. They have a record of items that were purchased with the credit card some of which may be tax-deductible on your tax returns. There is a belief that you deduct your purchases as you pay off your credit card: This belief is incorrect. When you put…
When are credit card purchases deductible?
Credit card statements are necessary to prepare your taxes. They have a record of items that were purchased with the credit card some of which may be tax-deductible on your tax returns. There is a belief that you deduct your purchases as you pay off your credit card: This belief is incorrect. When you put…
Bunch your itemized deductions
You choose every tax year whether to itemize or claim the standard deduction. With the standard amounts almost doubled by the Tax Cuts and Jobs Act, the trend definitely is toward the standard amount, which for 2020 returns is $12,400 for single filers this year, $18,650 for heads of households, and $24,800 for jointly-filing married couples. If,…
The Parsonage Allowance
IRC § 107 provides an exclusion from gross income for a “parsonage allowance,” housing specifically provided as part of the compensation for the services performed as a minister of the gospel. This includes the rental value of a home furnished to him or her as part of compensation or a housing allowance, to the extent…
Non-taxable benefits for ministers
Disability Insurance – The church can reimburse its pastor for this premium or pay it directly. Health Insurance – Group health insurance plans are a qualified fringe benefit. If the church does not qualify for a group plan because there is only one employee, you will need to establish either a One Person Health Reimbursement…
One Week to 1040 Extension Deadline
We are only seven days away from the final extension deadline for the 2019 1040 tax return. Once this deadline passes, there are no further extensions. IRS will consider your return late, and could assess late filing penalties if you haven’t already paid the tax on the return. If you still haven’t gotten started on…
Basic steps to start a new business
Understanding the tax responsibilities that come with starting a business venture can save you money and help with success. Choose a business structure The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are: Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between…
Guide to Clergy Compensation
Clergy Status is a person who has been granted ecclesiastical authority by an association, denomination, or state through the rite of ordination, commissioning, or licensing. 1. Generally, an ordained minister has a Master of Divinity from an accredited theological school and is recognized through the rite of ordination to preach and teach the gospel, to…
FAQ: 1040 Extension Deadline
We are one month away from the extended deadline for 1040 filings. Here are answers to many of the frequently asked questions we receive this time of year. When is the filing deadline? The extended filing deadline for the 2019 1040 return is October 15th. Can I get an extension past October 15th? No,…
Is it a hobby or a business?
Whether it’s something they’ve been doing for years or something they just started to make extra money, taxpayers must report income earned from hobbies in 2020 on next year’s tax return. What the difference between a hobby and a business? A business operates to make a profit. People engage in a hobby for sport or…