Homeowners Exclusion Can Reduce Tax on Home Sale
Are you selling a personal residence in 2019? If you lived in the home for two out of the five years before the sale date, there may be some good news for you. Under current tax laws, IRS allows for individuals to exclude up to $250,000 of income from the sale of a personal residence….
Understanding Clergy W-2 Forms
In many smaller churches, the person in charge of preparing payroll or preparing W-2 forms is not always a payroll expert. They may not understand the complexities of clergy tax law or how compensation should be reported on the form. To help, Clergy Financial Resources has prepared a sample Clergy W-2 for reference, which you…
The Decision: Clergy or Non-Clergy
When a church hires an employee, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. Ministers have what is commonly referred to as “dual tax status.” For federal…
Tax Advisor
Welcome to the CFR Family, Andrew. Clergy Financial Resources is excited to announce the addition of a new staff member to our team, Andrew Drazkowski, just in time for the 2019 Tax Season. We’ve hired Andrew as a payroll and tax advisor. His main responsibilities as we head through this season will be completing 1040…
2018 Webinar for Clergy W-2 Forms
Filing clergy returns can be an intimidating and even confusing process to the uninitiated. Practitioners and bookkeepers unfamiliar with clergy tax law will quickly find that Clergy W-2 forms differ slightly from regular W-2 forms. Often Social Security and Medicare withholding will get reported by mistake when they should not. Sometimes housing allowance or parsonages…
Clergy Housing Lands in Seventh Circuit
Churches and the IRS joined forces Wednesday before a sympathetic Seventh Circuit panel to argue that a 65-year-old income tax housing exemption for clergy members does not violate the Constitution’s Equal Protection Clause. “The court has to take history into account,” said attorney Luke Goodrich of the nonprofit law firm Becket, a public-interest firm representing…
Housing Allowance for Clergy Couples
Clergy couples are limited to the equivalent of one housing allowance between the two incomes, providing they live in the same location. In this instance, clergy need to be mindful of the amount requested by each spouse in the annual housing allowance resolution. Generally, any expense to provide or maintain the home can be used to justify…
Why is the second quarter of estimated quarterly taxes only two months?
Estimated tax payments under the Tax Adjustment Act of 1966 (Public Law 89-368) The Tax Adjustment Act of 1966 (Public Law 89-368) significantly altered estimated tax payment requirements in the United States. Estimated taxes used to be paid based on a calendar quarter, but in the 60’s the Oct due date was moved back to…
Property Tax Exemption for Parsonages
Some states exempt parsonages from property taxes which can either be homes owned by churches and occupied by clergy who serve a local church. California California property tax laws provide for three exemptions that may be claimed on church property: • The Church Exemption, for property that is owned, leased, or rented by a religious…
Who Qualifies For Special Tax Treatment As A Minister
When a church hires an employee, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll and taxes. Ministers have what is commonly referred to as “dual tax status.”…