Every Clergy Should Consider a 403(b)(9) Plan
Retirement planning is a vital part of financial stewardship, especially for clergy who often face unique challenges in managing income, housing allowances, and long-term savings. One of the most powerful tools available to clergy is the 403(b)(9) retirement plan—a tax-advantaged savings vehicle designed specifically for employees of churches, religious organizations, schools, and other nonprofits. What…
Kingdom Impact 5 Podcast – July & August Recap
We’ve had a great launch of the Kingdom Impact 5 Podcast in July and August. In under 5 minutes, the Kingdom Impact 5 podcast takes a deep dive into a topic to help your ministry stay compliant, confident, and financially strong. From IRS regulations and payroll best practices to bookkeeping tips and tax updates, we…
Kingdom Impact 5
Pastors and church leaders across the country are navigating an increasingly complex landscape. From shifting cultural dynamics to the day-to-day operational and legal challenges facing ministries, the need for clear, trustworthy guidance has never been greater. Kingdom Impact 5 is your go-to resource for real-world legal insight tailored specifically for churches and faith-based organizations. Hosted…
How tithing can reduce your taxable income
Tithing, the practice of donating a portion of one’s income to a religious organization, is a common tradition in many faiths. While tithing fulfills spiritual obligations, it also has potential tax implications that can be beneficial for taxpayers. Here’s a detailed look at how tithing affects taxable income: Eligibility for Deduction Tithing can be tax-deductible…
Are health care allowances taxable?
Name update (September 2026): The Individual Coverage HRA (ICHRA) is now called the CHOICE Arrangement. It’s the same benefit with the same rules. When a church provides a health care allowance to its pastor, the tax implications can vary based on how the allowance is structured. Here’s a detailed explanation: Direct Payments to the Pastor:…
What is Social Security Allowance
Crafting compensation packages for church pastors is a process distinctly different from setting salaries and benefits in the for-profit sector. What is Social Security Allowance? A Social Security allowance is an additional payment made by churches to clergy to help cover their Social Security tax burden. This allowance is often referred to as a SECA…
What qualifies as a tax-free love gift?
Gifts given to a minister by individuals out of personal affection, respect, or admiration, and not as compensation for services, can be considered non-taxable. For a gift to qualify as non-taxable, several conditions must be met: Genuine Personal Affection: The gift should be made out of personal feelings of appreciation, respect, or admiration for the…
Are bonuses taxable for ministers?
Taxable Income: Bonuses paid to ministers are considered taxable income and must be reported on their tax return. This includes any additional payments made to compensate for services rendered, even if they are referred to as “love gifts” or other terms. Form W-2: The value of the bonus should be included in the minister’s Form…
Senators Reintroduce Clergy Act to Allow Opt-In to Social Security
The legislation seeks to address concerns from faith leaders who, under current law, make a one-time, irreversible decision to exempt their ministerial earnings from self-employment taxes. This exemption means they do not contribute to or receive Social Security and Medicare benefits based on those earnings. The Clergy Act would establish a re-enrollment window for these…
Determining Deductible Ministry Mileage
Determining which mileage is deductible for your ministry involves a few key steps: Identify Ministry Use: Ensure that the mileage you’re claiming is for business purposes related to your ministry. This includes travel for conducting religious worship, performing sacerdotal functions, and other ministerial duties. Commuting to your main church or regular place of work is…