Non-deductible ministry meals & travel?
Non-deductible ministry meals & travel? Generally speaking, a deductible ministry expense must be “ordinary and necessary” for it to count as a write-off. Ordinary and necessary simply means it’s a common expense for someone in the ministry, and it’s essential for the operation of your church. Unfortunately, you can’t deduct all the food that you…
What is mileage reimbursement?
What is mileage reimbursement? Mileage reimbursement is the reimbursement you receive for using a personal vehicle for ministry purposes. The reimbursement covers all costs of owning and driving your vehicle for the qualified miles. The IRS mileage reimbursement covers the use of specific vehicles, namely: cars, vans, pickups, and panel trucks. Mileage reimbursement is normally…
Pros and cons of healthcare sharing ministries
Pros and cons of healthcare sharing ministries Like any health benefit, healthcare-sharing ministries have their pros and cons. This section will break down the major advantages and disadvantages of healthcare ministries so you can make the best decision for you and your organization. Pros of healthcare sharing ministries While low costs are a perk of…
Benefits of offering an HRA
What are the benefits of offering an HRA to our employees? You are most likely considering an HRA because you have decided to lower your health plan expenses by not providing your employees with group health insurance. The HRA will provide financial assistance to cover their eligible out-of-pocket healthcare expenses. Health reimbursement arrangements (HRAs) are…
Employee Benevolence
Employee Benevolence When it comes to benevolence, the IRS makes a distinction between providing donations to people who lack the basic necessities of life (food, water, shelter, etc.) and awarding gifts to your employees. Gifts to the Needy Generally speaking, if your organization provides benevolence to someone in poverty or temporary distress, the IRS considers…
Can I deduct the value of volunteer work?
Can I deduct the value of volunteer work? In short, there are certain tax benefits to take advantage of as a volunteer. In fact, any volunteer of a §501(c)(3) tax-exempt organization is entitled to receive deductible charitable contributions. Although no tax deduction is allowed for the value of the services performed for this type of…
Can I deduct the cost of a religion courses?
Can I deduct the cost of religion courses I took at church? It depends. If the church is an accredited school, you can deduct the tuition as your education expenses. Otherwise, you cannot. If you took the courses to prepare you for a new skill/work, they are not deductible either. However, if you work and the…
Can a Church Give an Employee Loan? During times of economic hardship, individuals may approach their employer and request a personal loan in order to help make ends meet. If an employee of a church requests a personal loan from the church, there are several issues to consider. As a matter of policy, will the…
It’s Not Too Late – Employee Retention Tax Credit
Employee Retention Tax Credit – It’s Not Too Late By now, most churches have heard of or even claimed Employee Retention Tax Credits (ERTC). Those that have taken advantage of the credit have seen hundreds of thousands to millions of dollars in benefits for retaining employees in 2020 and 2021. ERTC has been a lifeline for…
Summertime Fiscal Year Transitions
Summertime Fiscal Year Transitions Happy New Year in the summer! For some churches and other nonprofit organizations, this is a sensible statement. Most nonprofit organizations decide to follow the calendar year as their tax year (or “fiscal year”) when they are formed. Upon incorporation, some states require disclosure of the month in which the organization’s…