The IRS just announced their pension plan contribution limits for 2018. The contribution limit for 403(b)s has been increased by $500 to $18,500. IRA contribution limits have not changed in half a decade and will be $5,500 once again. If you’re over 50, you are eligible to make catch-up contributions. You can put an additional…

A QSEHRA allows small churches who do not offer group health insurance to their employees to provide money to employees on a tax-free basis; the money can be used to pay for individual health insurance policies and to reimburse employees for certain medical expenses. To offer a QSEHRA, a small church must have fewer than…

You may be able to reduce your taxes by deducting unreimbursed, ministry-related expenses. These expenses may be claimed as miscellaneous Itemized Deductions on Schedule A. You should keep your expenses separated by those associated with your wages and those associated with your self-employment income, and you should keep receipts to substantiate these expenses. The following…

Under 2017 law, it was a significant income tax advantage for a minister to have the employing church reimburse business expenses related to the ministry of the church. The reimbursements needed to meet the requirements of an accountable expense reimbursement plan. Simply stated, a tax-free expense reimbursement put an entire dollar back in the minister’s…

Find comprehensive help understanding United States tax laws as they relate to pastors and churches with Richard Hammar‘s 2018 Church & Clergy Tax Guide. Tax law, in general, is highly complex and ever-changing. Add to that the many unique rules that apply to church and clergy and you’re set up for a challenging task that requires an…

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 that you just don’t have to spare. Figuring out which form you need to file, tracking the changing regulation, and filing all takes time. Understanding all of the clergy rules associated…

The Tax Cuts and Jobs Act that was passed in December 2017 which eliminated the moving deduction. The moving expense deduction disappears from the tax year 2018 through the tax year 2025, but it’s scheduled to come back at that time unless Congress intervenes to eliminate it permanently. This time frame means that if you moved…

An HR Audit helps determine the effectiveness of the necessary HR function of your church. It represents a systematic, objective tool to assess regulatory or policy compliance in the workplace, and you can take it as many times as you like. (Note: Not designed to be comprehensive for every church, the following list of questions…

Most ministers are required to pay quarterly estimated taxes if you have fourth-quarter income, get them postmarked by January 16, 2018, tax deadline. Generally, the Internal Revenue Service (IRS) requires you to make quarterly estimated tax payments for the calendar year 2017 if any of the following apply: you expect to owe at least $1,000…

President Trump recently signed the tax reform bill into law, and it makes major changes to the U.S. tax code for both individuals and corporations. In fact, the bill represents the most significant tax changes in the United States in more than 30 years. While many deductions are remaining under the new tax law, there…