IRS extends deadline for Severe Flooding in Iowa
The IRS recently announced that tax return filing and tax payment deadlines have been postponed for victims of flooding and severe storms in parts of Iowa. If you are a resident of Fremont, Harrison, Mills, Monona or Woodbury County in Iowa, the IRS has extended tax filing and payment deadlines. This includes the 1040 filing…
I inherited a house. Do I have to pay the estate tax?
In most cases, the answer is no. While you may hear complaints about the “estate tax”, most Americans will never pay it. In 2019, the total assets of an estate have to be over $11,400,000 dollars before any estate tax is owed. Eleven Million Dollars! There is some confusion because there is an “estate tax”…
Claiming Honoraria Expenses
You may not think of payments received from Honoraria, Weddings, Funerals and Pulpit Supply as business income, but that’s exactly how IRS treats them on your tax return. Just like any other business, if you have unreimbursed expenses while doing those activities, you can claim those expenses as deductions and reduce the tax you owe….
Court Upholds Clergy Housing Allowance
Federal Appeals Court Upholds Clergy Housing Allowance On Friday, March 15, 2019, the Seventh Circuit Court of Appeals ruled in favor of the clergy housing allowance. In a unanimous 3-0 decision, the judges ruled that the housing allowance is constitutional and cited two legal precedents in support of their ruling. This is a tremendous victory…
Donating your RMD to Charity
When you reach 70 ½ years old, you must start taking Required Minimum Distributions (or RMDs) from your IRA. This can’t be helped… but did you know that you could donate your RMD to charity instead of receiving the income? IRS allows for an otherwise taxable distribution from an IRA (other than an ongoing SEP…
Documenting Donations
Charitable donations through your Church or through other non-profit organizations can be a significant portion of your deductions on Schedule A. It’s important to make sure that you are documenting your donations the correct way, otherwise an IRS examination could disallow your deduction! For any donations, whether they are cash or non-cash items, you should…
How Should I Get Reimbursed?
While working for a Church, you may have to pay some expenses out of your own pocket. This could be things like paying for gas while you drive to a distant location, or paying for office supplies, or paying for laundering ceremonial garments. Regardless of the expense, when you get reimbursed by your Church, you…
How Long Do I Have to Keep This Tax Stuff?
When you file your taxes, you should be retaining a copy of the tax return and all of the supporting documents to prove your income and expenses. But after five or ten years of filing tax returns, the amount of paper you have to keep can add up. Add all of the other important documents…
Moving Ministries?
A new Call can be exciting, but the logistics of moving and setting up in a new location can stressful, even before thinking about your taxes. Here are a few things to consider when moving to a new location. Moving Expenses are not deductible Regardless of whether your Ministry pays you or pays the movers…
Take Care, Don’t Overshare!
When most people imagine an identity thief, they imagine a young, bespectacled hacker, hunched over a computer while typing in computer commands, possibly wearing a black turtleneck. In reality, most private data theft is remarkably low-tech. Private data theft usually happens because the victim shares valuable information with the thief. Very little “hacking” is actually…
