income tax for ministers

Clergy Tax Tips: Keeping a Vehicle Mileage Log

As mentioned in a previous blog post in regards to pastors claiming their car payments as tax deductions, a pastor must choose what vehicle deduction they prefer: a vehicle deduction using standard mileage rate or the business use percentage of actual costs. Therefore, when it comes to vehicle deductions, pastors are encouraged to keep a mileage log for business use that includes total miles.

Current tax law requires proper record-keeping when it comes to deducting business use of your vehicle and if a pastor chooses vehicle deductions based off of standard mileage, consistent logging of mileage will save them time… Continue reading

Estimating Tax Payments for 2012 Taxes

If you currently have income that is not subject to tax withholding, you are inevitably dealing with estimated tax payments. A very common example of those dealing with estimated tax payments are church pastors. Pastors taxes often involve estimated payments and it is imperative that these be submitted accurately and in a timely manner to ensure that you’re not underpaying taxes and therefore avoiding penalties for underpayment.

Tips for Estimating Tax Payments for 2012 Taxes 

Determine your expected adjusted gross income by taking last year’s income and adjusting based off of any changes you experienced during the current year.… Continue reading

Ministers Take Note: Tips for Properly Filing Your 2012 Taxes

It’s been said that there are two things in life that you can count on, death and taxes. If you’re a minister you’ve most likely got the first one covered, it’s the taxes that may cause some issues. Minister taxes can be somewhat complicated, so if you’ve been called to the ministry it may be a good idea to consider preparing your 2012 taxes early and to talk with a tax professional about the best ways to properly file your taxes. 

As a minister that earns income, you still have to file taxes with the IRS and the state… 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

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

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