Q&A – Timing of terminating employees
Question: We are going to terminate an employee who has not been meeting expectations, even after several warnings. Could we give the employee notice that their employment will end in two weeks? That way they have a little time to search for a new job. Answer: We would not recommend giving notice ahead of an…
Refund delays, stimulus check errors foreshadow rough tax season
Tax-refund delays and stimulus-payment hiccups could spill into the upcoming tax season as the Internal Revenue Service continues to face challenges related to the coronavirus pandemic and as Congress considers yet another round of direct payments. Millions of Americans waited months for refunds in 2020, and millions also have yet to receive some or all…
Tax Season Start Date
The IRS announced it will begin accepting and processing returns on Friday, Feb. 12, 2021. The decision was made to push back the start date by a month to allow the department extra time to prepare following the Dec. 27, 2020 tax law changes. The tax filing deadline remains April 15, 2021.
When are credit cards purchases deductible
Credit card statements are necessary to prepare your taxes. They have a record of items that were purchased with the credit card some of which may be tax-deductible on your tax returns. There is a belief that you deduct your purchases as you pay off your credit card: This belief is incorrect. When you put…
Car allowances vs. mileage reimbursement
If you use your personal car for a business, you can take a mileage deduction to save on your taxes. But what if you drive your own car for the ministry at your church? The church can provide you a car allowance or mileage reimbursement. Let’s go over the differences between a car allowance and a mileage…
What kind of records should I keep
You may choose any recordkeeping system suited for your ministry that clearly shows your income and expenses. Your recordkeeping system should include a summary of all ministry transactions. This summary is ordinarily made in some type of bookkeeping account. Supporting Documents Purchases, sales, payroll, and other transactions you have in your ministry will generate supporting…
When are credit card purchases deductible?
Credit card statements are necessary to prepare your taxes. They have a record of items that were purchased with the credit card some of which may be tax-deductible on your tax returns. There is a belief that you deduct your purchases as you pay off your credit card: This belief is incorrect. When you put…
Churches can now file W-2/1099 forms online – Quick, Easy & Secure
Start Filing Forms Today Every church that pays remuneration for services performed by an employee must file a Form W-2 for each non-clergy and clergy employee or 1099 forms for contractors. For most churches, the mere thought of year-end reporting can cause headaches. You have to do it every year, and it consumes valuable time…
Who’s eligible for the second round of Economic Payment?
Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200 for a joint return), plus $600 for each qualifying child, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a social security number (SSN) valid…
What Does “Personal Use of Church Vehicle” Mean?
Personal use of a church vehicle for non-work-related purposes is a taxable perk known as a de minimis benefit. Personal use of a church vehicle includes: Your employee’s commute between home and work, if it’s on a regular basis. Trips unrelated to your organization’s purpose, work, trade, etc. Use on a vacation or on the…
