Communicate with Your Accountant Year-Round
Tax and Financial management should be a year-round activity rather than limited to the traditional tax season. The biggest mistake nearly one-third of clergy make is only communicating with their accountants during tax time. In order that we may properly advise you of tax considerations, please keep us informed of any significant changes in your…
New Hire Checklist
Document the Employee is Legally Allowed to Work This involves verifying both their identity and that they are legal for employment in the United States. Once they have presented you with the necessary documentation to verify this, you can fill out their I-9 form. You needn’t submit this to anyone. However, it is crucial to…
Clergy Tax Fact: Student Loan Debt Skyrocketing
Outstanding student loans were $1.11 trillion as of 3/31/14. Outstanding credit card debt was $857 billion as of 3/31/14. Student loans have increased $124 billion in the last 12 months while credit card debt has increased just $7 billion over the same period (source: Federal Reserve). Source: Clergy Financial Resources Home Clergy Financial Resources is…
Time for Reform?
From 1984 through 2008, the Social Security payroll taxes paid by Americans exceeded the benefit payments made by Social Security. However since 2009, benefits paid have exceeded taxes collected, including a $51 billion shortfall in 2013 (source: Social Security). Clergy Financial Resources Home Clergy Financial Resources is a national accounting and finance organization serving churches…
Looking into the future?
More than half (56%) of 1,000 Americans at least age 25 that were surveyed earlier this year have never attempted (nor has their spouse attempted) to calculate how much they will need to accumulate for their eventual retirement (source: Employee Benefit Research Institute). Clergy Financial Resources Home Clergy Financial Resources is a national accounting and…
Is your hobby really a business?
The Internal Revenue Service defines a hobby as an activity you pursue without expecting to make a taxable profit. Basically, you do it because you like it, regardless of the cost. But if you demonstrate that you are involved in an activity with the expectation of making money on it, the IRS will consider it…
Ministry Mileage – Best Practices
Almost all clergy use their personal vehicle for ministry purposes. And there’s nothing wrong with that, as long as they keep proper records. If you are chosen for an audit, you can bet the auditor will take a good look at the vehicle mileage. This is sometimes the red flag that caused the audit. Every…
What are the IRS implications for honoraria, “love offerings,” and fees received separately from compensation?
For the most part, any income received in exchange for services rendered is taxable for both federal income and Social Security taxes, regardless of how it was received. The only exceptions are income paid for certain employer-provided benefits and housing allowances. If income comes through a source other than your employing organization, and it is…
Year-End Tax Tips to Help You Save – Make Charitable Contributions
If you plan to give to charity, consider donating before the year ends. That way you can claim your contribution as an itemized deduction for 2013. This includes donations you charge to a credit card by Dec. 31, even if you don’t pay the bill until 2014. A gift by check also counts for 2013…
IRS Updates Mileage Rates for 2014
The Internal Revenue Service today issued the 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The business, medical, and moving mileage rates are decreasing from the 2013 rates. The charitable rate is remaining the same. Beginning on Jan. 1, 2014, the…