Another Lawsuit Threatens the Clergy Housing Allowance
A lawsuit filed on September 12, 2011 threatens the constitutionality of sections 107 and 265(1)(6) of the federal tax code, which establishes the housing allowance for ministers. The Atheist group (Freedom from Religion Foundation) filing the lawsuit asserts the unique benefit set aside especially for “ministers of the gospel” is a violation of separation of…
How the American Jobs Act Will Affect Clergy & Churches
How the “American Jobs Act” Will Affect Church Employees: At the beginning of 2010, a “payroll tax holiday” was passed. Employees normally pay 6.2% on their first $106,800 of wages into Social Security, however, this “tax holiday” decreased that amount by 2%. This allowed employees to pay 4.2% of wages into Social Security instead of…
Ten Tax Tips for Clergy Who Are Moving This Summer
Summertime is a popular time for people to move. Moving can be expensive, but Clergy Financial Resources offers 10 tax tips on deducting some of those expenses if your move is related to starting a new job or a new job location. Move must be closely related to start of work: Generally, you can consider…
Deduct Expenses Related To Church Mission Trips On Your Taxes
Summer is popular time for many churches to spread their ministry beyond the walls of their church. Whether your mission trip is an hour away or halfway across the globe, there is a substantial tax benefit available to people donating towards a mission trip. Many people that go on mission trip do not receive the…
Summer Day Camp Expenses May Qualify for a Tax Credit For Clergy
Along with the lazy, hazy days of summer come some extra expenses, including summer day camp. Clergy Financial Resources has some good news for parents: those added expenses may help you qualify for a tax credit. Many parents who work or are looking for work must arrange for care of their children under 13 years…
Lawsuit Challenging Clergy Housing Allowance Dropped
In 2009, the atheist group ” Freedom from Religion Foundation” filed a lawsuit challenging the constitutionality of Sections 107 and 265(1)(6) of the federal tax code, which establishes the housing allowance for ministers. Their argument stated that the unique benefit set aside for “ministers of the gospel” is a violation of the separation of church…
Five Tips for Clergy Paying Estimated Taxes
Estimated tax is a method used to pay tax on income that is not subject to withholding. Most clergy are exempt from tax withholdings and FICA. You must pay estimated taxes during the year based on your ministry income. These five tips from Clergy Financial Resources will provide you with a quick look at estimated…
How a Potential Federal Government Shutdown Will Affect the Tax Deadline
The absence of a budget agreement between Congress and the Obama administration could result in a shutdown of some federal government services beginning Saturday, April 9. In the event of a government shutdown, the IRS plans to continue accepting all tax returns, both electronically and paper filed. The IRS has stated that they will continue…
Need More Time to Pay Your Taxes?
Clergy who owe taxes may be relieved to know that there are some options for those who owe and can’t afford to pay the full amount right away. Here are the top 10 things that Clergy Financial Resources wants you to know if you need more time to pay your taxes. Clergy who are unable…
Using Plastic to Pay Taxes?
Using your credit card to pay your IRS tab at authorized Web sites, such as www.payusatax.com and www.pay1040.com, triggers a charge of up to 2.35% on top of your payment. If your tax bill is $4,000, for example, that’s an additional $94. How to avoid these fees: These vendors are passing along the credit-card processing…