IRS Audits on Churches Temporarily Halted
In a previous article “Clarifying the IRS Rules About Endorsing Candidates From The Pulpit,” we wrote about the IRS rules and regulations concerning churches/clergy officially endorsing political candidates. Throughout the election season, the IRS was inundated with complaints regarding the churches officially endorsing candidates. Recently, Bloomberg BNA talked with Russell Renwicks of the IRS Tax-Exempt and…
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…
Is your church in compliance with current payroll laws?
Make sure your church is in compliance with current payroll laws. Clergy Financial Resources payrolls service now includes a “year-to-date” payroll audit. During our audit, we will review each employee’s compensation to to ensure that everyone is being paid in accordance to Federal tax laws. Clergy Financial Resources is the leading payroll provider for churches….
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…
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…
Tax Documents Necessary to File
Statements are on the way from employers, banks, stockbrokers and other institutions and agencies that were involved in taxpayers’ financial lives last year. Each of these groups has, by law, until Jan. 31 to get their annual tax statements in the mail to you. Many taxpayers now receive these documents electronically. So be sure to…
