Clergy Moving Expenses Q&A
This Q&A has been developed to provide general information for churches and clergy who may have questions about the change in federal tax law concerning moving expense payments. Q: How does the new law change moving expense payments? A: The moving expense exclusion and the individual deduction were both eliminated for tax years 2018 through…
IRS Issues Basic Guidance on Payroll Tax Deferral for Churches
The IRS has issued Notice 2020-65 deferring the withholding and deposit of the employee’s share of Social Security (OASDI) taxes on applicable wages. Specifically, the deferral applies to applicable wages paid on a pay date between September 1, 2020, and December 31, 2020. The availability of deferral is based on the date the employee is paid….
Church Reimbursements can be Taxable
Depending on how your Church reimburses you, it may or may not impact your taxes. Reimbursement plans generally fall into one of two categories, accountable or non-accountable. Under an “accountable” plan, the Church only pays your expense, nothing more and nothing less. Usually you would either have to give them receipts, or you would have…
Is It Time for A New Clergy Tax Advisor?
Selecting a tax advisor or accounting firm may seem easy at first. There are two types of professional services within our industry. The first type is called a “Generalist”, which prepares any and all returns for the public at large. They may have a limited number of clergy returns or none at all. They do…
Clergy can still deduct unreimbursed business expenses!
If you are not a licensed tax professional, you probably get most of your tax news from friends, family or news programs. “I don’t have to track business expenses, I heard they are no longer deductible” has been a fairly common statement this tax season. But for Clergy, this statement is actually false! The Tax…
Clergy Tax Organizer
Clergy Financial Resources would like to invite you to a webinar designed to teach the best method to complete the Clergy Tax Organizer. This is an Internet training webinar on selected organizer topics that features an in-depth discussion designed specifically to assist you in preparing your tax return. The webinar is designed for clergy who…
Who qualifies for “Clergy Status”
The employing congregation, denomination, integral agency of a denomination or a church, or religious organization is responsible to determine whether an individual qualifies as clergy status under the federal law definition. Having “minister” in the title or ministerial duties in a job description is not enough. The IRS uses the five criteria listed below to…
Health Care Penalty Removed, but Premium Tax Credit Still in Play
Before 2019, individuals were required to enroll in qualifying health insurance or they would receive a tax penalty. This was called “minimum essential coverage”. You may remember receiving a 1095 form showing all the months that you had coverage. If you didn’t have insurance or you had an insurance gap, you also might have received…
How does an inheritance get taxed?
If you recently received an inheritance, you may be wondering if you have any tax obligations. Fortunately, except for very large estates, most people will never have to pay any sort of tax on their inheritance. Estate tax is calculated based on the value of the deceased’s assets at time of death. This is usually…
Getting a Second Opinion on Clergy Taxes
Clergy taxes are an extremely narrow niche of tax law, so many generalist tax companies and software packages are not familiar with the rules. On top of this, the Tax Cuts and Jobs Act drastically changed the way that members of the Clergy can claim expenses. If you didn’t file with Clergy Financial Resources, it’s…