housing allowance

Clergy Taxes: Tax Advantages for Ministers

Working as a minister has many benefits, including reaching out to and ministering to a wide array of people who are seeking help and guidance. In addition to helping others, members of the clergy are also eligible for a number of tax benefits as well. These benefits were created for members of the clergy in order to ensure that they were being reimbursed adequately for the important work that they do. Therefore it’s important that pastors are aware of the tax advantages that they are eligible to receive.

Here are some of the tax advantages that can be applied to… Continue reading

Tax Breaks on Minister Taxes

Accounting for tax breaks when figuring and submitting minister taxes can be quite complicated. The government has allowed for a number of tax benefits for members of the clergy that are not available to taxpayers outside of the clergy. These tax breaks were originally created to help members of clergy who were poorly paid. There are actually a number of lucrative exemptions that ministers should be aware of including a housing allowance that can reduce a minister’s tax burden quite effectively.

Here are some common tax benefits that ministers have access to as long as certain IRS qualifications are met.… Continue reading

Pastors Tax Basics: Filing 2012 Taxes

If you are a pastor, then it’s a good idea to start considering tax preparation for your 2012 taxes. Pastors are faced with confusing rules when it comes to their tax status and how and when to pay their taxes. The U.S. government allows pastors to be considered as both employees and self-employed depending on a pastor’s individual situation. For this reason, pastors taxes must be planned carefully and discussed with a professional.

Here are some pastors tax basics if you’ve already begun getting your 2012 taxes together.

Tax Status

Due to the fact that pastors can be classified as… 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

Determining Housing Allowance on Minister Taxes

There are a number of tax exemptions that ministers can benefit from as long as ministers are aware of these exemptions. One of the most common is a tax exempt housing allowance. All expenses for housing which includes furniture and maintenance can be deducted legally. Here is how to determine if you are eligible and how to go about it. 

Determine Eligibility

A minister is defined by the IRS as a person who is “duly ordained, commissioned, or licensed minister of a church.” Religious employees that don’t have these credentials are not eligible for the housing allowance.

Deductions

Once… Continue reading

Ordained Minister Tax Advantages and Benefits

As an ordained minister you may be eligible for a number of tax advantages that you may not be aware of and that are not available to people outside of the ministry. Minister tax benefits were originally instituted to help clergymen as they were originally paid quite poorly.  Ministers that are ordained have the option of taking a number of tax deductions and opting out of payments that others are expected to make as long as certain IRS qualifications are met. Here are several such minister tax benefits.

Exempt from Self-Employment Taxes

When income is received from a church,… Continue reading

Recommendations for Year-End Tax Preparation

The leaves are falling, the temperatures are dropping and the holidays are just around the corner. This means that the year is quickly winding down which also means it’s time to start thinking about 2012 taxes. Early tax preparation is the key to a seamless and stress-free tax season. Clergymen can especially benefit from early tax preparation as their taxes often need to be approved by a tax professional to ensure that they are accurate.

According to a blog post on clergytaxnet.com, there are several tax-related things that clergymen need to consider and possibly apply before the end of the… 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

Tutorial on How to File Income Tax for Ministers

Minister taxes are filed slightly differently than your average Joe due the way that they are paid for the services. Oftentimes ministers have dual tax status because they are considered to be employees and self-employed simultaneously. The IRS will not consider a person as a minister for tax purposes unless they can meet a certain number of requirements.

1. To find out what requirements need to be met to be considered a minister contact the IRS. Usually if a person can answer any of these questions in the affirmative then they are considered a minister.

Are you a licensed, ordained… Continue reading