Providing Donors With Tax Acknowledgements
Providing Donors With Tax Acknowledgements A donor may be eligible to claim a deduction on his or her tax return for qualifying charitable donations. However, it is not the recipient organization’s role to determine the tax consequences of any donor’s charitable actions. Such a determination is, as a matter of tax law, ultimately between the…
Educators Can Deduct Up to $300
Educators Can Deduct Up to $300 in Out-of-Pocket Classroom Expenses in 2022 For 2022, the maximum expense deduction eligible educators may take for qualifying out-of-pocket classroom expenses has increased to $300, even if they take the standard deduction. Educators who are married and file a joint return with another eligible educator can deduct up to…
It’s Not Too Late – Employee Retention Tax Credit
Employee Retention Tax Credit – It’s Not Too Late By now, most churches have heard of or even claimed Employee Retention Tax Credits (ERTC). Those that have taken advantage of the credit have seen hundreds of thousands to millions of dollars in benefits for retaining employees in 2020 and 2021. ERTC has been a lifeline for…
Summertime Fiscal Year Transitions
Summertime Fiscal Year Transitions Happy New Year in the summer! For some churches and other nonprofit organizations, this is a sensible statement. Most nonprofit organizations decide to follow the calendar year as their tax year (or “fiscal year”) when they are formed. Upon incorporation, some states require disclosure of the month in which the organization’s…
ICHRA vs. QSE-HRA
ICHRA vs. QSE-HRA Churches were relieved when the Qualified Small Employer Health Reimbursement Arrangement (QSE-HRA) came into law in late 2016. Finally, there was an affordable health coverage option for small churches. The plan was quickly adopted by thousands of small churches and remains extremely popular today. In June 2019, The President announced continuing HRA…
W-4 Instructions for Clergy
The W-4 form contains five steps. Not every step is applicable to every employee, so some sections might correctly remain blank. Step 1. Here, clergy and nonclergy would provides personal information. Make sure the name, address, and social security number entered match what Payroll has on file. This section also asks filing status: single or…
What is an IRS payment plan?
What is an IRS payment plan? An IRS payment plan is an agreement you make directly with the IRS to pay your federal tax bill over a certain amount of time. There are two kinds of IRS payment plans: short-term and long-term. Typically you’ll make monthly payments to settle what you owe. So long as…
Which States Are Giving Out Tax Rebates?
Which States Are Giving Out Tax Rebates? The federal government is unlikely to send more Stimulus payments this year, but at least 17 states have issued or are in the process of sending out payments. California Gov. Gavin Newsom and state lawmakers have agreed to send millions of Californians inflation relief checks as high as…
When a Nonprofit Organization Ceases Operations
When a Nonprofit Organization Ceases Operations Previous articles have discussed the many steps in setting up a nonprofit organization. Like any new venture, starting a nonprofit comes with risks. Not all new organizations succeed. The disruptions of COVID-19, and the economic impacts that have followed, only add to the volatility of new endeavors. In such…
403(b) contribution limits
403(b) contribution limits Most workers have heard of 401(k) plans and their usefulness in saving for retirement, but other tax-favored retirement savings vehicles are available to certain employees. For those who work in education, medical professions, or nonprofit organizations, many employers offer 403(b) plans. 403(b) plans are similar in many ways to 401(k)s, and one thing they…
