Selecting a tax advisor or accounting firm may initially appear straightforward. However, it’s important to understand the two types of professional services available in our industry.
The first type is a “Generalist”, which prepares various tax returns for the general public. These providers may have limited experience with clergy returns, if any. As a result, they may not offer the necessary guidance and expertise regarding clergy tax law, ministers’ compensation, PARP, housing allowances, pension accounts, W-2 forms, and more. Often, they need to conduct research or reacquaint themselves with clergy-specific tax laws each time they handle a clergy return.
The second type is a “Specialist”, focusing on clergy tax law and exclusively providing services to the clergy community.
At Clergy Financial Resources, we are proud to be a “Specialist” in the industry. Since 1980, we have dedicated our services and support to ministers, recognizing that they are uniquely treated under the tax code. Ministers have both advantages and disadvantages in this context, and without the right guidance, they may miss out on optimal tax filing strategies.
– Our knowledge, experience, and approach are what sets our firm apart –
When selecting an advisor or firm to prepare your 1040 return, consider asking them the following questions:
-
Approximately how many clergy clients do you serve annually?
-
Do you calculate estimated payments?
-
Can you assist with optional withholdings?
-
Should I opt out of Social Security?
-
Can I deduct ministry expenses?
-
Is there a limit on the housing allowance?
-
How does the housing/parsonage allowance work?
-
Are you familiar with Section 107 of the Internal Revenue Code? Can you explain it to me?
These are fundamental questions that a qualified clergy tax advisor should be able to answer promptly. If your advisor is unable to provide clear and confident responses, they may not be the right fit and might struggle to effectively assist you should the IRS scrutinize your return.
Our Annual Tax Service is uniquely crafted and includes three invaluable components:
-
Clergy Support: Providing answers to your questions and guidance throughout the year.
-
Tax Preparation: Ensuring compliance while minimizing your tax liability.
-
Estimated Payment Support: Preventing those unexpected surprises.
The Annual Tax Service starts at $450.00. The actual cost may vary depending on the complexity of each individual’s situation.
With constantly changing rules, we are here to address your questions, simplify your tax return, and handle the tedious work that consumes your valuable time. Need to file? There is still time to file before the extended tax deadline of April 15, 2025.
Schedule an appointment to learn more
If you are seeking a new tax advisor for your 2024 return, or if you need assistance with filings from previous years, Clergy Financial Resources is here to help.
Visit our website at https://www.clergyfinancial.com/services/clergy-tax-preparation/
< Back
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com