If you are moving to a new call and your Ministry is willing to help pay for moving expenses, you should be aware that it could actually cost you additional taxes!
Under the Tax Cuts and Jobs Act, moving expenses paid by your employer are not only NOT deductible, but they are also considered taxable income. This happens regardless of whether the church pays you for the moving expenses or pays the movers directly. If you are considering moving and the ministry is willing to pay for moving expenses, consider asking if they would be willing to set some of that aside to cover the tax obligations that it will generate.
Moving expenses is just one of the categories of income covered by our Clergy Tax Organizer. Filling in the Clergy Tax Organizer is the first step to completing your taxes with Clergy Financial Resources. To order a tax organizer, visit our store at https://www.clergyfinancial.com/store/. The cost of the organizer is credited as a down payment on your final 1040 bill.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (763) 425-8778
Fax: (888) 876-5101