The U.S. Has a Really Helpful Student Loan Repayment Program—and No One’s Using It
Many clergy leave seminary with large student loan bills. The menu of repayment options available for struggling borrowers is a key benefit of taking out federal loan. Only 3 out of 10 borrowers in the repayment plans are getting the kind of help that pegs a borrower’s payment to his or her monthly income. These…
Tax Tips for Clergy Moving this Summer
Tax Tips for Clergy Moving this Summer If you make a work-related move this summer, you may be able to deduct the costs of the move. This may apply if you move to start a new call or to work at the same job in a new job location. In order to deduct moving expenses,…
Volunteering? Don’t forget to keep track of mileage.
You can deduct as a charitable contribution any mileage directly related to the use of your car and unreimbursed out-of-pocket expenses in providing services to a charitable organization. You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. You can use a standard mileage rate of 14…
Can clergy living in a parsonage receive a parsonage allowance?
Pastors living in parsonages should be provided with a “parsonage allowance.” Even in a parsonage, every pastor has some expense in maintaining his or her home. The amount of the allowance may depend on several factors: whether or not the parsonage is furnished, who provides the upkeep, pays the utilities, etc. When the parsonage allowance…
Housing Provided for Student Clergy – Taxable or Not?
Like other fringe benefits, free or discounted church-provided lodging is usually subject to income and other taxes. To determine the fair market value of the housing provided to an intern, the church may check local newspaper listings for comparable rental properties or ask a local realtor for an estimate of the property’s rental value. The…
Secular and Clergy Employment Status…What’s the difference?
Churches are required to classify each person that is hired as either a secular or clergy employee. This is a very crucial step in the hiring process. Clergy are taxed differently than secular employees and this treatment is mandated by law. It isn’t optional, so it is important to know who qualifies as secular or…
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…
What would happen if the “housing allowance” exclusion was eliminated?
How much money does the IRC 107(clergy housing allowance/parsonage tax exclusion) actually save clergy? After running a few scenarios, the outcome may surprise you. In each scenario, we calculated the amount of tax paid by the clergy in two ways. First, their taxes are calculated as if the housing allowance/parsonage exclusion was eliminated(secular employee). This…
Kids going to a day camp this summer? Get a tax break!
Most working parents are well aware they get a tax break to help cover the costs of sending their children to day care. But some parents overlook the tax advantage of summer day camp costs. During school vacations, many parents turn to these supervised programs to provide child care while they work. Overnight camps don’t…