clergy finances

Clergy Finances: Pastor Retirement Options

Throughout their careers, people will often begin preparing and saving for retirement, this is true for pastors as well. At some point in time a pastor will no longer be able to work on a full-time basis but just like everyone else, will need some form of financial compensation to ensure quality of life for him and his family.

These options may or may not be similar to more traditional workers’ options but just like when it comes to pastors taxes and clergy finance, pastor retirement options are still just as effective albeit slightly more non-traditional.

SIMPLE or Roth IRA’s… Continue reading

Clergy Finances: Unemployment Benefits for Pastors

The nation’s unemployment rate is a hot topic. Regardless of what profession or industry one works in, there is always the chance for losing one’s job. This scenario is no different for church pastors. They may find themselves without a job due to the economy, changes within their church or for a variety of other reasons. The difference when it comes to clergy finances is that if pastors find themselves out of work they are rarely eligible for unemployment benefits.

Churches and other religious organizations are exempt from participating in a majority of state unemployment programs. Therefore, since they don’t… Continue reading

How a Housing Allowance Works on Minister Taxes

Ministers provide an array of services for members of their churches as well as for their communities. Many believe that ministers are under-compensated for the selfless work that they provide and as a result the IRS has given clergymen certain tax-exempt benefits on their taxes including a tax-exempt housing allowance. All expenses for housing including furniture and maintenance can be legally deducted as long as ministers plan accordingly in advance and provide the IRS with detailed and adequate record-keeping. And while minister taxes allow for a housing allowance that is exempt from federal and state income taxes, it is still… Continue reading

Clergy Tax Services: The In’s and Out’s of Medical Insurance for Pastors

Medical insurance is an important topic for everyone, this includes those in the ministry as well. It has been cited as a major factor in most family’s financial health and pastors and clergymen are no exception to this. When it comes to clergy finances, medical insurance plays a big role. Fortunately, for pastors there are a number of alternatives available that allow pastors and their families to have affordable and quality medical coverage.

Here are a few options when it comes to medical insurance for pastors.

Group Coverage

Group coverage plans are often available for multi-staff and denominational churches and… Continue reading

Basics of Clergy Finances and Taxes

For many pastors, ministers, or clergymen the reason that they get involved in church ministry is because of a higher calling, a passion for their religious beliefs and the people around them. They usually are not in it for the money, concerns about salary or clergy finances are often an afterthought. However, everyone has financial needs and there are some basic questions that need to be answered when it comes to clergy finances and clergy taxes.

Self Employed vs. Employee

As with other employees, religious organization report clergy income on a form W-2. The difference comes in the collection of… Continue reading