Join Us Today – Turn HUNGER into HOPE
Clergy Financial Resources has partnered with Feed My Starving Children which provides life-saving meals to people around the world. Join us today to Turn HUNGER into HOPE. Each of us can do something. Together we can end hunger, in Jesus’ name. As a Christian non-profit organization, Feed My Starving Children is called to feed God’s…
Deduct It! – Ministers Deductions
A minister who is classified as an employee may claim his or her unreimbursed expenses only as a miscellaneous itemized deduction on Form 1040 Schedule A. These expenses are deductible only if, and to the extent, they and any other miscellaneous itemized deductions exceed 2% of the minister’s adjusted gross income (AGI). A few common…
New Innovative Ways of Tracking of Receipts
One thing you learn over the years is that keeping receipts is essential. Whether it’s to double-check an odd entry in the accounting software or to know you’re covered if the IRS comes calling, you have to have them. Of course, this can create a mountain of receipts every year, so you need a plan…
Can I Estimate Ministry Miles on My Return?
The IRS requires that you have adequate records backing up your mileage deduction. If you’re audited, the IRS examiner will ask to see your records or log. If you don’t have exact, reliable records, the IRS will ordinarily disallow your entire mileage deduction. This is true even if it’s clear that you did in fact drive…
What Qualifies for Ministry Clothes Deduction
What Qualifies for Ministry Clothes Deduction The cost of clothing can be a deductible ministry expense only if the clothing is: required or essential in the taxpayer’s employment not suitable for general or personal wear; and not worn for general or personal wear. You can only take the work clothes deduction if the apparel is…
Professional Dues vs Contributions
Ministers often pay a small annual renewal fee to maintain their credentials–this is a deductible ministry expense. However, ministers’ contributions to the church are not deductible as ministry expenses. These are deductible only as charitable contributions. The difference is that charitable contributions are a personal itemized deduction on Schedule A, while ministry deductions are directly…
What should I know about Ministry Expenses
If you paid for ministry-related expenses out of your own pocket, you may be able to deduct those costs. You can only deduct unreimbursed ministry expenses that are ordinary and necessary to your ministry as an clergy employee. An ordinary expense is one that is common and accepted in your industry. A necessary expense is…
Is Clergy Auto Allowance taxable?
An auto or gas allowance is a cash payment given to you each pay period by the church for the purpose of covering your automobile ministry expenses. When you receive an auto allowance, it is considered taxable “compensation” and included with your wages reported in Box 1 on Form W-2. Federal tax law allows you…
Benevolence Funds
Benevolence gifts are given to needy individuals or families. Benevolence gifts made directly by a donor to needy individuals are not deductible. To qualify for a charitable deduction, contributions must be made to a qualified organization.
Which organizations can receive deductible charitable contributions.
You can ask any organization whether it is a qualified organization, and most will be able to tell you. Or go to IRS.gov. Click on “Tools” and then on “Exempt Organizations Select Check” (www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). This online tool will enable you to search for qualified organizations.
