8 questions about employee expense reimbursements
The compliance risks of mishandling employee expense reimbursements have spiked in recent years. And the IRS is in the middle of a wide-ranging audit crackdown on employment-tax issues. Have you reviewed your expense reimbursement policy recently to determine if it adheres to the Internal Revenue Service (IRS) guidelines? Now is a great time to review your policy…
Homeowners Exclusion Can Reduce Tax on Home Sale
Are you selling a personal residence in 2019? If you lived in the home for two out of the five years before the sale date, there may be some good news for you. Under current tax laws, IRS allows for individuals to exclude up to $250,000 of income from the sale of a personal residence….
Second Quarter Estimated Payment Due 6/17!
Believe it or not, we are almost six months through the year. If you are a member of the clergy who is treated as self-employed in regards to Social Security and Medicare taxes, your second quarter estimated payment is due on 6/17/2019. The United States has a pay-as-you-go tax system. The Internal Revenue Service expects…
Understanding Clergy W-2 Forms
In many smaller churches, the person in charge of preparing payroll or preparing W-2 forms is not always a payroll expert. They may not understand the complexities of clergy tax law or how compensation should be reported on the form. To help, Clergy Financial Resources has prepared a sample Clergy W-2 for reference, which you…
Protecting Personal Data
According to a 2016 report from the Bureau of Justice Statistics, 10% of people 16 or older experience at least one type of identity theft. That’s why it’s important for us all to protect our private data whenever possible. Here are ten easy tips for keeping your personal data secure: Don’t carry your social security…
Are clergy subject to W-4 withholdings?
Filling out and submitting a Form W-4, the Employee’s Withholding Allowance Certificate, enables your church to withhold the correct amount of federal income tax for non-clergy compensation. Using the form, you calculate the number of allowances that you can claim on your taxes by totaling your dependents, deductions, and adjustments to withholding. Calculating the correct number…
Documenting Clergy Meal Expenses
As Self-Employed individuals, members of the clergy are allowed to deduct some out-of-pocket ministry expenses on Schedule C or Schedule SE. One expense that many forget to track is the meal expense. If you are meeting others for church-related discussions or activities, you can deduct 50% of the meal costs on your return. If you…
Are Clergy Gifts Taxable?
One common area of confusion for Clergy is the taxability of gifts. The US tax code explains that personal gifts are exempt from taxation (up to an annual dollar limit). Normal gift-giving out of affection from one individual to another is usually not taxable. If it were taxable, everyone would need to file a tax…
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…
Five Tips for Claiming Ministry Mileage
For those who do not have a reimbursement plan for mileage, or for those who have some mileage that they pay for out of pocket, here are some quick tips about claiming mileage as a deduction: You cannot deduct normal commuting expenses to and from your main church/regular place of work. If you make a…
