IRS Has $1 Billion for People Who Have Not Filed a 2008 Income Tax Return
WASHINGTON — Refunds totaling more than $1 billion may be waiting for one million people who did not file a federal income tax return for 2008, the Internal Revenue Service announced today. However, to collect the money, a return for 2008 must be filed with the IRS no later than Tuesday, April 17, 2012. The…
Hunting for a New Ministry Position Could Help Cut Taxes
Your search for new work in the ministry must be in the same field in which you’re currently or were formerly employed. Seminary graduates are out of luck. The costs you incur in getting your first job aren’t deductible, because the tax law only allows you to write off expenses incurred in searching for another…
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…
Health Care Information on my W-2?
When you get your 2011 W-2, you might notice some new information on the form. Box 12 is where the church will report the cost of your group health insurance coverage. This amount is both the amount the church pays as well as the premiums paid via payroll deductions. The amount, which will be designated…
Clergy Financial Resources Reminds Parents of Ten Tax Benefits
Your kids can be helpful at tax time. That doesn’t mean they’ll sort your tax receipts or refill your coffee, but those charming children may help you qualify for some valuable tax benefits. Here are 10 things Clergy Financial Resources wants parents to consider when filing their taxes this year. 1. Dependents In most cases,…
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…
2011 Year-End Tax Strategies For Clergy
Here’s a quick checklist of tax savings strategies to consider and apply before the end of December: 1. Make Charitable Contributions and Donations: Generally, for individuals, contributions to tax-exempt charitable organizations are limited to 50 percent of the taxpayer’s adjusted gross income for the tax year. Those unused items cluttering closets can be donated to…
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…
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…
Ten Tax Tips for Clergy Who Are Moving This Summer
Summertime is a popular time for people to move. Moving can be expensive, but Clergy Financial Resources offers 10 tax tips on deducting some of those expenses if your move is related to starting a new job or a new job location. Move must be closely related to start of work: Generally, you can consider…