Many clergy leave seminary with large student loan bills. The menu of repayment options available for struggling borrowers is a key benefit of taking out federal loan. Only 3 out of 10 borrowers in the repayment plans are getting the kind of help that pegs a borrower’s payment to his or her monthly income. These…
Tax Tips for Clergy Moving this Summer If you make a work-related move this summer, you may be able to deduct the costs of the move. This may apply if you move to start a new call or to work at the same job in a new job location. In order to deduct moving expenses,…
You can deduct as a charitable contribution any mileage directly related to the use of your car and unreimbursed out-of-pocket expenses in providing services to a charitable organization. You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. You can use a standard mileage rate of 14…
Pastors living in parsonages should be provided with a “parsonage allowance.” Even in a parsonage, every pastor has some expense in maintaining his or her home. The amount of the allowance may depend on several factors: whether or not the parsonage is furnished, who provides the upkeep, pays the utilities, etc. When the parsonage allowance…
With so many line items making up a clergy’s compensation package, how exactly does one apply a cost of living adjustment (COLA) to their salary package. When a COLA is given to a clergy’s salary, the adjustment is made on their base + housing. Since housing is a fixed number, the total adjustment is added…
Many clergy(and their spouses) participate in activities(outside their main job) that create additional sources of income. Is it a business or a hobby in the eyes of the IRS? The tax implications of that classification can vary greatly. Below are some questions to ask yourself when trying to determine if an activity is a business…
Do you plan to travel for a church mission trip or other charity work this summer? Some travel expenses may help lower your taxes if you itemize deductions when you file next year. Here are five tax tips Clergy Financial Resources wants you to know about travel while serving a charity. 1. You must volunteer to…
Hiring new employees is always an exciting milestone in any church, but it can also be overwhelming. We know you are doing the right thing by ensuring tax and payroll accuracy with your payroll. Now it’s time to confirm you are in compliance with the other federal and state regulations. Here are two things you…
Tax season has come and gone again and now the IRS is taking a second look at some returns. Even if you’ve already filed a return and received a refund, it is possible that a letter from the IRS could show up in your mailbox. Each year, the IRS sends millions of letters and notices…
The IRS will issue a notice giving eligible taxpayers until July 15, 2013, to file their 2012 returns and pay any taxes normally due April 15. No filing and payment penalties will be due as long as returns are filed and payments are made by July 15, 2013. By law, interest, currently at the annual…
