Generally, most income you receive is considered taxable but there are situations when certain types of income are partially taxed or not taxed at all. All sources of income are fully taxable and must be included in your income unless it is specifically excluded by law. To help clergy understand the differences between taxable and…
Phil Driscoll owns two homes. One in Cleveland Tennessee and a lake home outside of Cleveland Tennessee. Phil Driscoll is an ordained gospel minister. Phil Driscoll Ministries paid for both homes and it was excluded from his income under the Pastor’s Housing allowance under Section 107 of the Internal Revenue Code of 1986. The IRS…
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…
The end of the year is the perfect time to switch payroll companies. Clergy Financial Resources offers an easy online payroll management service that specifically meets the requirements of religious organizations. We have an unparalleled tax expertise on the complex issues associated with church payroll and clergy compensation. Sixty percent of churches do not follow…
Recently in the news, there have been stories about clergy endorsing political candidates from the pulpit: Pastors Preach Politics from Pulpit– News42.com Hastings Pastor Defends Endrosement – WCCO.com Pastors, Not the Gov’t, Should Decide When They Can Speak About Candidates From the Pulpit – Christian Post Minnesota Pastors Plan to Endorse Candidates From the Pulpit…
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?…
Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. They are given the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances or sacraments according to the prescribed tenets and practices of that church or denomination. If a church or denomination ordains…
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…
Clergy Financial Resources has created an “Understanding Clergy W-2 Forms” This PDF helps identify what needs to go in each box of a Clergy W-2. Click on the link below to access the file. Understanding Clergy W-2’s Source: Clergy Financial Resources https://www.clergyfinancial.com Clergy Financial Resources is a national accounting and finance organization serving churches and…
In general, the fair rental value of the property is a question of facts and circumstances based on the local real estate market. If the pastor rents his or her home, the amount of the rent would be presumptive evidence of the fair rental value. Obtain the current fair rental value of your home from…
