Monthly Archives: October 2012

Tax Preparation for Missionaries

Serving God and spreading the Good News often requires going outside of your comfort zone and even overseas in order to spread the Word. If God is leading you to teach the masses as a missionary, it’s necessary to consider everything that being a missionary entails which also includes proper tax preparation.

According to IRS Tax services, missionaries fall under the definition of ministers. Ministers and missionaries both are people that are considered ordained by a licensed religious group to conduct religious worship, administer ordinances and follow a church’s prescribed system of beliefs. Therefore a missionary is responsible for filling… Continue reading

2012 Taxes: A List of Miscellaneous Pastor Business Expenses

From moving expenses to personal computer expenses, there are a number of miscellaneous business expenses that pastors can deduct from their federal income tax liability when preparing their 2012 taxes. These include an array of church-related travel and transportation expenses, entertainment and home office expenses.

Here is a list of other expenses to keep in mind for tax preparation this year that is generally tax deductible.

Contributions to a Religious Organization

Contributions made by the pastor to the church are deductible as charitable contributions on Schedule A. If donations are required of the church leader, then these donations are deductible… Continue reading

Pastors Taxes and Travel Expenses

Travel expenses can be a deductible expense when it comes to submitting yearly income tax for ministers. This applies to both self-employed ministers as well as ministers that are considered employees of their churches. It’s important to note, however, that deductions are treated differently based on whether pastors are considered self-employed vs. employees.

Travel expenses can be considered a business expense on pastors taxes and therefore deductible if they are run-of-the-mill expenses incurred while traveling for official pastoral duties only. Similar to other non clergy taxes, these expenses must come with a receipt and proper accounting records which include date… Continue reading

Minister Tax Strategies

Ministers often go into the ministry because of their love for God and passion for people. Little do they know that the nuances involved in clergy taxes are often quite complicated, leaving them to wonder why they didn’t just become firemen or teachers. Clergymen need not let their passions be doused just because of complicated minister tax laws

Ministers find themselves in a distinct position when it comes to paying clergy taxes to the federal government, which considers them both employees and self-employed at the same time. As a result, it often behooves ministers to seek professional tax preparation help… Continue reading

Pulpit Freedom Sunday Questions Clergy Tax Laws

According to an October 2 Huffington Post blog, nearly 1000 pastors from around the country will have taken on the IRS on Sunday, October 7 by participating in “Pulpit Freedom Sunday”. One of the major aspects of clergy tax code is the fact that churches are considered tax-exempt. However, pastors across the country believe that their voices are being silenced politically due to that status.

Currently under the Johnson Amendment, tax-exempt organizations, which include churches, are not allowed to endorse any candidate running for elective public office. Therefore, the questions behind the creation of “Pulpit Free Sunday” is whether or… Continue reading

Tax Services for the Modern Church: Claiming Tithes on Taxes

The concept of tithing consists of donating 10 percent of income to a church. This modern notion of tithing has been around for quite some time. Many believe that tithing began with the Old Testament example first recorded in Genesis, then again in the book of Numbers when tithing was included in Mosaic Law, with its purpose to provide for the Levites.

Despite how it began, tithing has been around for a long time and still remains an important aspect of modern religion. Tithing combined with tax services is a more contemporary concept. Modern tithing usually takes the form of… Continue reading

Tax Preparation for Pastors: Medical Insurance Deductions

Medical Insurance is a major factor when it comes to family finance whether you’re a member of the clergy or not. With always- increasing medical costs, the issue of medical insurance and figuring all possible deductions is essential.  In general, tax preparation for pastors can be somewhat complicated and oftentimes requires the assistance of a professional tax preparer. However, when it comes to rules concerning deductions for medical insurance, the rules are the same for pastors and clergy as they are for the general public. But just in case you’re wondering here are guidelines for medical insurance deductions if… Continue reading