Limitations on the Housing Allowance
Limitations on the Housing Allowance After reading about the Housing or Parsonage / Manse Allowance, you may be thinking, “if I designate my entire salary as a Housing Allowance, would it all be excluded from federal income taxes?” IRS has already addressed this by limiting the Allowance to the least of the following: 1. The…
Commuting expenses deductible?
Commuting expenses deductible? You cannot deduct the costs of taking a bus, trolley, subway, or taxi or driving a car between your home and your main church or regular place of work. These costs are personal commuting expenses. You cannot deduct commuting expenses no matter how far your home is from your church or regular…
Understanding Clergy W-2 Form
Understanding Clergy W-2 Form By January 31st, an employer must give or mail an employee’s copies to each employee from whom the tax was withheld during the year or wages paid for services. For employees whose employment ends before the end of the year, W-2 Forms can be supplied any time after employment ends, but…
Nontaxable income for clergy?
Name update (September 2026): The Individual Coverage HRA (ICHRA) is now called the CHOICE Arrangement. It’s the same benefit with the same rules. Nontaxable income for clergy These are examples of sources of income that are non-taxable: • Qualified love gifts (person-to-person and within limits) Cannot be solicited Must be spontaneous in nature Must be…
Reporting the Housing Allowance
Reporting the Housing Allowance The designated housing allowance may be reflected on Form W-2 in Box 14 with the notation, “Housing Allowance.” Though not required, this reporting method is suggested by Publication 517. Or, a church can report the designated housing allowance to a minister by providing a statement separate from Form W-2. This may…
Do managers need to be classified as exempt?
Do office managers need to be classified as exempt under the Fair Labor Standards Act? No, it’s fine to classify office managers as nonexempt. You are under no obligation to classify any employees as exempt, even if they meet the criteria under the Fair Labor Standards Act. You could have an entire workforce of nonexempt…
W-2 vs. 1099: Which workers get which?
W-2 vs. 1099: Which workers get which? As the economy continues to expand, churches now more than ever need to possess a thorough understanding of the classification for each person performing services for the church. Knowing whether the IRS views someone as your employee or as an independent contractor dictates tax obligations and associated paperwork,…
The Myths of the 1099-NEC forms
The Myths of the 1099-NEC forms 1099-NEC is a new form, as of the 2020 tax reporting year that has replaced some of the functions of 1099-MISC. The IRS requires you to report information about people who perform work for the church but are not on the payroll. This involves filling out Form 1099-NEC: Nonemployee Compensation. Unlike…
New Standard Mileage Rates for 2022
New Standard Mileage Rates for 2022 Beginning on January 1, 2022, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be: 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021, 18 cents per mile driven for medical, or moving purposes…
Webinar – Clergy Tax Return Basics
Clergy Financial Resources would like to invite you to a webinar designed to teach the basic method of completing a clergy tax return. The webinar is designed for clergy who are interested in recognizing new ways to minimize their own tax liability, in addition to, gaining a better understanding of the current tax laws that affect clergy today. Each webinar will be led by a clergy tax professional and will last between 45 to 60 minutes based on the level of discussion during the session.
Time: One-to-One | Contact Office To Schedule
Topics: Clergy Tax Return Basics
Who Should Attend:
• Clients
• Clergy
• Associate Pastors
• Youth Pastors
What You Will Learn:
• Review common clergy tax return errors
• Review a clergy tax return
• How to report clergy income
• Calculate self-employment income
• Understand IRC 265
• How to report honorariums
• employee vs self-employed
• Clergy dual filing status
• Taxable income
• Housing/parsonage allowance
• Reimbursement plans
• Professional expenses
• Tax Record Keeping
• Ways to reduce your overall tax liability
• and more…
Education level: Basic
If you would like to register more than one individual for this webinar, please enter the correct number of participants in the quantity box below, e.g. 2=two person, 3=three people, etc.
Schedule Webinar Training:
You can schedule your one-on-one by contacting our office directly to coordinate a convenient time
Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: 1 (888) 421.0101
Fax: 1 (888) 876.5101