Six Facts about Choosing the Standard or Itemized Deductions for Clergy
When filing your federal income tax return, clergy can choose to either take the standard deduction or to itemize their deductions. Clergy Financial Resources has put together the following six facts to help you choose the method that gives you the lowest tax. Whether to itemize deductions on your tax return depends on how much…
Want Your Tax Refund Fast – Choose Direct Deposit
Direct Deposit is the fastest, safest way to receive your tax refund. An e-filed tax return means a fast refund. Taxpayers who combine e-file and Direct Deposit can get their refunds in as few as 10 days. Here are three reasons more than 73 million taxpayers chose Direct Deposit in 2010: Security Thousands of paper…
Eight Tax Benefits for Parents
Did you know that your children may help you qualify for some tax benefits? Here are 8 tax benefits to consider when filing your tax returns this year. Dependents. In most cases, a child can be claimed as a dependent in the year they were born. Child Tax Credit. You may be able to take…
Two Tax Credits to Help Pay Higher Education Costs
There are two federal tax credits available to help you offset the costs of higher education for yourself or your dependents. These are the American Opportunity Credit and the Lifetime Learning Credit. To qualify for either credit, you must pay postsecondary tuition and fees for yourself, your spouse or your dependent. The credit may be…
5 New Year’s Clergy Tax Resolutions
This year I will be more organized. I will make a tax file for the year. I will put important data in it during the year. I hate the stress of getting all my tax stuff together and crunching numbers, but every year it happens that way. Make one for 2010 as well, even though…
Five Important Facts about Dependents and Exemptions
Some tax rules affect every person who may have to file a federal income tax return – these rules include dependents and exemptions. Here are six important facts you should know about dependents and exemptions that will help you file your 2010 tax return. 1.    Exemptions reduce your taxable income. There are two types of…
Unrelated Business Income Tax (UBIT)
Churches and religious organizations may engage in income-producing activities unrelated to their tax-exempt purposes, as long as the unrelated activities are not a substantial part of the organization’s activities . However, the net income from these unrelated business activities will be subject to the “Unrelated Business Income Tax” if the following three conditions are met:…
Top 10 Question of a New Call
The proposed salary package will normally represent the previous pastor’s salary package or the guidelines set by your organization. 1- Does the church provide a social security allowance? 15.3% or 7.65% of salary and housing. 2- Does the church provide for the supplemental medical insurance? 3-Does the church provide a 100% professional accountable reimbursement plan?…
Year end tax strategies for clergy
Here’s a quick checklist of tax savings strategies to consider and apply before the end of December: 1. Make Charitable Contributions and Donations: Generally, for individuals, contributions to tax-exempt charitable organizations are limited to 50 percent of the taxpayer’s adjusted gross income for the tax year. Those unused items cluttering closets can be donated to…
Clergy Compensation Package
The 1986 Tax Reform Act, the 1987 Omnibus Budget Reconciliation, Technical Correction Act of 1988, and the 1993 Reconciliation Act made the most sweeping changes in almost 50 years. The law is not simple. Your salary package is the most important factor in determining your annual tax liability. At year end, you are limited in…
