New Overtime Laws Could Affect Church Employees
The US Department of Labor announced that they had finalized a new law that has extended overtime benefits to nearly 4.2 million working Americans. Starting December 1, 2016, salaried employees that make less than $47,476 ($913/week) per year will be eligible for overtime pay if they work more than 40 hours in a work week….
Is Clergy Auto Allowance taxable?
An auto or gas allowance is a cash payment given to you each pay period by the church for the purpose of covering your automobile ministry expenses. When you receive an auto allowance, it is considered taxable “compensation” and included with your wages reported in Box 1 on Form W-2. Federal tax law allows you…
Clergy Dual Status
Clergy Dual Status Employment Status for Other Tax Purposes Even though for social security tax purposes, you are considered a self-employed individual in performing your ministerial services, you may be considered an employee for income tax or retirement plan purposes. For income tax or retirement plan purposes, some of your income may be considered self-employment…
Taxable or Non-Taxable Clergy Income?
Taxable or Non-Taxable Clergy Income? Generally, most income you receive is considered taxable but there are situations when certain types of income are partially taxed or not taxed at all.  All sources of income are fully taxable and must be included in your income unless it is specifically excluded by law. To help clergy understand…
Estimated Tax Payments
Clergy Estimated Tax Payments The US tax system is a quarterly system, not an annual one. Tax payments are due at least quarterly, and the year-end return is simply a reconciliation of the activity. If you receive income in the first quarter of the year, the taxes are due at the end of that quarter,…
Tips for Clergy Who Missed the Tax Deadline
Tips for Clergy Who Missed the Tax Deadline File as soon as possible. If you owe federal income tax, you should file and pay as soon as you can to minimize any penalty and interest charges. There is no penalty for filing a late return if you are due a refund. Penalties and interest may…
Year end tax strategies
Year end tax strategies Here’s a quick checklist of tax savings strategies to consider and apply before the end of December: 1. Make Charitable Contributions and Donations: Generally, for individuals, contributions to tax-exempt charitable organizations are limited to 50 percent of the taxpayer’s adjusted gross income for the tax year. Those unused items cluttering closets…
How to complete clergy W-2 forms
Clergy W-2 Form Ministers working for a church or church agency should receive a Form W-2 by January 31. Ministers who report their federal income taxes as self-employed on Form 1099, may face a significant risk of additional taxes and penalties, if they are audited and reclassified as employees by the IRS. While the majority…
Ask the Pros – Tax, Payroll & HR Questions
Clergy Tax Law – Research Tax Research ServiceMaybe you don’t have time to find the answer or perhaps you just want a second opinion – We’re here for you! We answer clergy tax questions all year. Clergy Financial Resources’ research team is unmatched by any other tax organization. Our experienced team of clergy tax professionals…
Clergy Tax Organizer ®
NEW 2017 ONLINE ORGANIZER IS NOW AVAILABLE! Thank you for selecting the Clergy Tax Organizer ® to assist you with preparation of your tax returns. The organzier will help clergy accumulate and summarize their tax information to prepare a more accurate return. Each year we publish an organizer for clergy, which is designed to be…