Donating Honoraria to Charity
When working as a Minister for weddings, funerals, baptisms or other speaking engagements, it is common to receive payments as gratitude. The payments for these services are collectively referred to as honoraria. Some Ministers do not wish to receive any money for their service, so they donate the money they receive to the church or…
Filing Extensions Do Not Extend Time to Pay
The most important thing to remember about extensions is that an extension to file does not extend the time to pay. IRS expects full payment by April 15th, whether or not you file an extension or not. If you have not made all of your estimated payments or anticipated a balance for 2018, you should…
2018 Filing Extensions
The April 15th 1040 deadline is almost here. If your return is not yet filed, you should consider filing an extension. IRS allows taxpayers to file for an automatically approved 6-month extension to October 15th if they need more time to file their 1040 tax return. No reason for the extension request is necessary- as…
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…
Donating the Right Way
Many of us donate our hard-earned time and money to charitable organizations and causes, but there is a right way and a wrong way to donate when it comes to your tax return. One mistake is donating to unqualified organizations. While donating directly to individuals can help them quickly, it won’t get you a deduction…
Do Members of the Clergy Qualify for Public Service Loan Forgiveness? With Restrictions.
Public Service Loan Forgiveness (or PSLF) is a program that allows certain individuals to get the remainder of their direct student loans discharged. Sounds great, right? Of course, there are a lot of restrictions. In order to qualify, you must Work full-time for a government agency or non-profit Have direct loans Repay your loans on…
What is “Donation Bunching”?
In all the talk about the Tax Cuts and Jobs Act, you may have heard about the terming “bunching donations” being thrown around. What is it? Can it help your tax return? “Donation bunching” is a tax strategy to attempt to maximize your tax deductions. Prior to 2018, it was much easier for taxpayers to…
Resolve to Start 2019 Organized!
Nobody likes rushing to gather tax documents just before the April 15th deadline. Who needs the additional stress and worry? Don’t stress out this tax season. Make a New Year’s Resolution to get your tax organizer completed and returned early! Clergy Financial paper organizers will start being mailed to clients on January 15th. The online…
What Should The Gift Acknowledgement Letter Contain?
Prompt and thoughtful gift acknowledgments are central to reporting compliance. IRS regulations govern what documentation donors need in order to claim a deduction for their charitable contribution. It’s helpful to have the sample template ready to send out that can be customized as donations arrive, and it’s imperative to have a good system for recording…
Decide whether to file for recognition of tax-exempt status
The Internal Revenue Code provides an automatic federal tax exemption for churches. Some churches choose to file for formal recognition of tax-exempt status and some do not. The following questions may help a church to decide whether to file for tax-exempt status: • How large is the church expected to become? If the expected income is less than…
