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…
ICHRA vs. QSE-HRA
ICHRA vs. QSE-HRA Churches were relieved when the Qualified Small Employer Health Reimbursement Arrangement (QSE-HRA) came into law in late 2016. Finally, there was an affordable health coverage option for small churches. The plan was quickly adopted by thousands of small churches and remains extremely popular today. In June 2019, The President announced continuing HRA…
403(b) contribution limits
403(b) contribution limits Most workers have heard of 401(k) plans and their usefulness in saving for retirement, but other tax-favored retirement savings vehicles are available to certain employees. For those who work in education, medical professions, or nonprofit organizations, many employers offer 403(b) plans. 403(b) plans are similar in many ways to 401(k)s, and one thing they…
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…
ICHRA Requirements for Reimbursement
ICHRA Requirements for Reimbursement There are no limits to how much a church can offer for reimbursement under ICHRA. This is a big difference from QSEHRA which has rather restrictive limits. With ICHRA, churches can offer as much or as little as they’d like as long as it’s offered fairly to each class. In addition, employers can choose…
2022 meals and entertainment deduction
2022 meals and entertainment deduction As part of the Consolidated Appropriations Act signed into law on December 27, 2020, the deductibility of meals changed. Food and beverages will be 100% deductible if purchased from a restaurant in 2021 and 2022. Here are some examples: Type of Expense Deduction Entertaining clients (sport events, club membership, golf games, etc.) 0%…
Starting a Nonprofit Organization: Federal Tax-Exempt Status
Starting a Nonprofit Organization: Federal Tax-Exempt Status Once a non-profit organization has been incorporated with the state, obtained a federal employee identification number, formed a board, and commenced operations, it can apply for tax-exempt status with the federal government. There are two major reasons why a nonprofit may desire tax-exempt status. First, exempt status allows…