IRS Updates Mileage Rates for 2014
The Internal Revenue Service today issued the 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The business, medical, and moving mileage rates are decreasing from the 2013 rates. The charitable rate is remaining the same. Beginning on Jan. 1, 2014, the…
Less Traditional Ways to Give to Charity
As you’re putting together your Christmas shopping list, be sure to include charitable gifts that could help reduce your tax bill. In addition to the usual dollar donations or household goods and clothing, consider some less traditional ways to give to charities. Many groups will accept vehicles with some even making arrangements to pick up…
Clergy Housing Allowance Ruled Unconstitutional
BREAKING NEWS: Friday, November 22, 2013, U.S. District Judge Barbara Crabb in Wisconsin ruled that the “clergy housing allowance” portion of the Internal Revenue Code(IRC-107(2)) is unconstitutional. This ruling could have a enormous impact on clergy around the country. According to a 2002 statement by former U.S. Rep. Jim Ramstad (MN-R), the clergy housing allowance exclusion saves…
Housing Allowance: Church Owned Parsonage vs. Renting vs. Owning
Federal Income Tax: Parsonage allowances: Ministers who live in a church-provided parsonage do not pay federal income taxes on the amount of their compensation that their employing church designates in advance as a parsonage allowance, to the extent that the allowance represents compensation for ministerial services, is used to pay parsonage-related expenses such as utilities,…
2014 Charitable Contributions Bulletin Inserts
Help your members give more by answering their charitable giving and tax law questions. Donors may be unaware of the significant tax deductions they can claim by properly reporting their charitable contributions, educate your donors by providing them with these easy-to-use question and answer format inserts. Simply place an insert in your church bulletins, newsletters,…
Charitable Contributions Through Payroll
Church employees wishing to make charitable contributions to their church can do so through a payroll deduction. This deduction must be set-up as an after-tax deduction in the church’s payroll system. The charitable donation deduction through payroll is only done for convenience purposes and does not provide an immediate tax benefit. On the employee’s tax…
Medical expense deduction becomes less generous
Clergy Tax Law Alert: Beginning in 2013, medical expenses for most clergy are only deductible to the extent they exceed 10% of your AGI, up from 7.5%. This change was enacted as part of the health care reform bill. It does not yet affect clergy 65 and older, who can still use the 7.5% AGI…
Benevolence Policy Tips for Churches
We recommend that each church establish its own written benevolence policy. An appropriate policy would include the following: Description of the purpose of the benevolence program (e.g. to provide support to the poor and needy). Criteria to be used to determine whether a person qualifies to receive benevolent gifts (e.g. income limitations, distressed situation, loss…
Using a Church Credit Card?
Churches often provide their employees with church credit cards. The church should have a credit card policy which indicates the card should never be used for employee’s personal expenses and should only be used for ministry related expenses. If personal expenses have been paid with this card, these amounts do need to be reported as…
FSA? HSA? What do all these acronyms mean?
Health Flexible Spending Account (FSA) – tax-advantaged account that allows plan members to set aside pre-tax dollars for eligible health care expenses. Money not used by the end of the year (or any grace period) is forfeited. Health Spending Account (HSA) – allows both plan members and employers to make pre-tax contributions that can be…
