Remember to deduct clergy remote work expenses!
With the current quarantine situation in many states, many more people are working from home. While most non-clergy employees can no longer deduct unreimbursed employee expenses on Schedule A, Clergy still have the ability to deduct these expenses on Schedule SE, their self-employment tax schedule. If you had to buy a computer, purchase software, buy…
Top 10 Clergy W-2 Mistakes
Correctly filing Clergy taxes can be difficult, especially because many W-2 forms already contain errors or omissions. Here are ten common mistakes that are made when issuing Clergy W-2 forms. Forgetting to remove 403(b) contributions from taxable wages. The wages that Clergy defer into their traditional 403(b) retirement accounts should not be taxed. Forgetting to…
What is the Employee Retention Credit?
Under the CARES Act, an eligible church may be able to offset the impact of COVID-19 with an Employee Retention Credit. You must continue to pay employees during a COVID-19 related closure and carry on with church at some point during 2020 to be eligible for the credit. A qualifying closure occurs during any calendar…
How Do I Get the PPP Loan Forgiven?
You are eligible for loan forgiveness for the amounts you spend over the next eight weeks after receiving the loan on certain qualifying expenses. The qualifying expenses of the church over the eight-week period include payroll costs, rent, interest on mortgage debt and utilities. If the number of full-time employees is reduced over this time…
Coronavirus Stimulus Payments
Economic impact payments have started to be issued this week. Here are some basic facts about the payments: Who is eligible? US citizens or residents aliens who have a valid SSN, could not be claimed as a dependent, and have adjusted gross income under limits. How much is the payment? $1,200 for individual earning less…
IRS phones unstaffed, service centers closed, paper filings stopped.
As the global pandemic continues, IRS has scaled back or shut down parts of their organization. As of now, the IRS is no longer processing paper returns. If you mailed a paper return to the IRS, it will be processed when they reopen, but it is unclear when that will be. If you need to…
A quick analysis of important economic data
Clergy Financial Resources has received permission and partner with Elliott Pollack to provide an analysis of economic data. When you take a long view of what’s been done to help the economy over the past few weeks, in total it’s been quite favorable. The CARES Act is a $2.3 trillion disaster relief act that, if…
FAQ – Paycheck Protection Program (PPP)
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to churches and small businesses to pay their employees during the COVID-19 crisis. The loan amounts will be forgiven as long as: The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8…
IRS Economic Impact Payment Scams on the Rise
Even though economic impact payments are brand new in 2020, scammers are already using the new terminology to trick people into giving up their money or their financial information. Here are some tips from IRS on avoiding these schemes: IRS will not call you to verify payment information for the economic impact payment. Retirees do…
All States Extend Filing and Paying Deadline
By now you probably know that the 1040 filing and payment deadlines have been delayed to July 15th, but what about your state return? According to information compiled by the American Institute of Certified Public Accountants, as of 4/7/2020 all states with a personal income tax have extended their 4/15 deadline. The majority of states…
