December 10, 2025
Understanding Taxable Income Rules for Sabbatical Pay
Sabbatical payments made to a minister are generally treated by the Internal Revenue Service (IRS) as taxable compensation rather than exempt benefits. Although sabbaticals are often intended for rest, study, or renewal, the IRS views the payments as primarily personal in nature. Because the minister remains employed during the sabbatical,
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December 10, 2025
Are You a Household Employee?
Are You a Household Employee? When you work in someone’s home—whether as a nanny, caregiver, housekeeper, or gardener—you may wonder how the IRS classifies your role. Understanding whether you are a household employee or an independent contractor is crucial because it directly affects your tax responsibilities and your employer’s obligations.
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December 10, 2025
Determining the Fair Rental Value of Clergy Housing
A common approach to estimating the fair rental value (FRV) of clergy housing is to apply a fixed percentage—often 12% to 15%—of the home’s current value. A more reliable alternative is to use methods such as a comparable rental analysis or a comparable sales evaluation performed by a qualified third
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