Less Traditional Ways to Give to Charity
As you’re putting together your Christmas shopping list, be sure to include charitable gifts that could help reduce your tax bill. In addition to the usual dollar donations or household goods and clothing, consider some less traditional ways to give to charities. Many groups will accept vehicles with some even making arrangements to pick up…
Clergy Housing Allowance Ruled Unconstitutional
BREAKING NEWS: Friday, November 22, 2013, U.S. District Judge Barbara Crabb in Wisconsin ruled that the “clergy housing allowance” portion of the Internal Revenue Code(IRC-107(2)) is unconstitutional.  This ruling could have a enormous impact on clergy around the country. According to a 2002 statement by former U.S. Rep. Jim Ramstad (MN-R), the clergy housing allowance exclusion saves…
2014 Charitable Contributions Bulletin Inserts
Help your members give more by answering their charitable giving and tax law questions. Donors may be unaware of the significant tax deductions they can claim by properly reporting their charitable contributions, educate your donors by providing them with these easy-to-use question and answer format inserts. Simply place an insert in your church bulletins, newsletters,…
Medical expense deduction becomes less generous
Clergy Tax Law Alert: Beginning in 2013, medical expenses for most clergy are only deductible to the extent they exceed 10% of your AGI, up from 7.5%. This change was enacted as part of the health care reform bill. It does not yet affect clergy 65 and older, who can still use the 7.5% AGI…
FSA? HSA? What do all these acronyms mean?
 Health Flexible Spending Account (FSA) – tax-advantaged account that allows plan members to set aside pre-tax dollars for eligible health care expenses. Money not used by the end of the year (or any grace period) is forfeited.  Health Spending Account (HSA) – allows both plan members and employers to make pre-tax contributions that can be…
Donations to charitable organizations?
All types of donations, from cash to cars, could be valuable tax deductions, so make sure you count them all when you file. Be sure to follow the donation tax rules, the most important being that you give to a qualified organization — that is, one that has tax-exempt status with the IRS. Also be…
FAQ’s – IRS and the Government Shutdown
Will I still have to meet the October 15 deadline? Yes. Regular filing deadlines will remain in effect during the shutdown. So anyone who requested an extension on their taxes last spring should still file their returns by October 15. The IRS is urging individuals to file their tax returns electronically because those returns are…
Government Shutdown and the IRS
Clergy should keep filing their tax returns and making deposits with the IRS, as they are required to do so by law. The IRS will accept and process all tax returns with payments, but will be unable to issue refunds during this time. Clergy are urged to file electronically, because most of these returns will…
Flexible Spending Accounts
A flexible spending account (FSA), also known as a flexible spending arrangement, is one of a number of tax-advantaged financial accounts that can be set up through a cafeteria plan. An FSA allows an employee to set aside a portion of earnings to pay for qualified expenses as established in the cafeteria plan, most commonly…
Minister not allowed housing allowance exclusion.
A minister didn’t receive a salary from his church, but the church paid his personal credit card charges, his home mortgage and home utility expenses. He claimed these payments should be excluded from his income because he made a vow of poverty. The Tax Court upheld the IRS in finding the payments were taxable income….