Quarterly Estimated Tax Payments – Q4 Reminder
Quarterly Estimated Tax Payments – Reminder If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st – December 31st, 2021 quarter of the year is January 18th, 2022. You may be able to skip the January 18th payment if you file your 2021 return by January 31st,…
Are contributions effective for 2021 or 2022
Are contributions effective for 2021 or 2022 It’s that time of year again when many people add charitable giving to their busy holiday to-do list. Year-end giving can come with great benefits, of course, and now is a good time to refresh on some highlights, as well as finer points that can get donors in…
Ministry Mileage
Ministry Mileage Documentation of expenses is vital to an acceptable accountable reimbursement plan. Pre-Covid, ministry mileage driven is generally the minister’s greatest expense. Some ministers have contended that every mile they travel is in the furtherance of their ministry – and thus reimbursable. Their contention is based upon the fact that they never stop being a…
Retirement 403(b) Plans for Ministers
Retirement 403(b) Plans for Ministers While it is true that ministers, and other church employees, may earn less than those performing similar jobs requiring similar skills in the secular world, there are unique tax advantages that can help offset the compensation differences. One of the greatest advantages for church workers is the 403(b) retirement plan….
4 Reasons to Donate Stock to Church
If you’ve ever donated to a nonprofit, you’re probably familiar with cash giving — you write a check or make a credit card payment, and your money is put to work supporting the causes you love. But did you know that cash isn’t the only thing you can donate to charity? Many donors are choosing…
Safeguarding Form 4361 – Opting out of Social Security
Safeguarding Form 4361 – Opting out of Social Security A minister who wishes to be exempt from social security/Medicare tax must file a Form 4361 with the IRS for approval. Before your application can be approved, the IRS must verify that you are aware of the grounds for exemption and that you want the exemption…
Mid-Year – Housing Allowance Review
Mid-Year Review of Housing Allowance Designations Perhaps the most beneficial tax benefit available to a minister is the clergy housing allowance, which allows a minister to exclude permissible housing expenses from taxable income. Now that that the current year is more than half over, it is a good time for churches and their ministers to…
Is a Minister’s Outside Income Taxable?
Is a Minister’s Outside Income Taxable? When a minister’s income is reported on a year-end W2 or 1099, it is straightforward that the income is taxable and must be reported as such. However, it may be less clear to a minister if other forms of income should be reported as taxable. A minister may receive…
Reporting ministry expenses and/or declare a housing allowance for interim positions
How should I report ministry expenses and/or declare a housing allowance for interim positions. This situation presents unique issues, especially for retirees who are receiving a pension. The differences in tax treatment depend on the length of the interim position, and taxpayers are advised to consider them carefully: Interim position of one year or less…
Three key tax provisions that apply to clergy
The three main key tax provisions that apply to clergy: Self-employment tax Clergy are not eligible to have FICA taxes withheld from their church compensation. In lieu of FICA taxes, clergy pay self-employment tax, also known as Self-Employment Contributions Act tax (SECA). Reimbursements from an employer of SECA are taxable as wages. However, even though…
