IRS regulations

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

For a Smooth Tax Season Start Clergy Tax Preparation Early

As the end of the year approaches, so do thoughts of the upcoming tax season. In order for 2012 taxes to go smoothly, it often behooves us to start thinking and preparing for tax time before the year is over. This is especially true for church clergy. They have an array of interesting and complex tax issues that they need to decipher before tax season so it is often suggested that they start early on their taxes.

When it comes to clergy taxes, it’s important to keep good records of all business related expenses throughout the year. Rather than struggling… Continue reading