pastors taxes

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

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

Vehicle Deductions for Pastors

When it comes to tax preparation, appropriately deducting car expenses is an important aspect no matter what your profession, even pastors. If a pastor uses a vehicle for business and personal reasons, they are able to deduct the costs that are involved with the business use of that car. They cannot deduct expenses used for personal reasons including car payments.

A pastor must choose what vehicle deduction they prefer: a vehicle deduction using standard mileage rate or the business use percentage of actual costs. When it comes to vehicle deductions, pastors’ are encouraged to keep a mileage log for business… 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

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

Claiming Car Payments on Pastors Taxes

When it comes to deductions on taxes, the list can be long and varied depending on your occupation. This is especially true when it comes to pastors taxes. Items such as medical expenses, mortgage interest and travel expenses usually top the list. However, car payments are another standard deduction that should be kept in mind when preparing clergy tax forms.  

Business use of a vehicle is a deductible expense that can be claimed on a tax return for pastors. Members of clergy that use a vehicle for both business and personal use can deduct the cost associated with business… 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