self-employed

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

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

Tax Preparation for Ministers: Self-Employed vs. Employee

The life of a pastor can be difficult yet extremely rewarding. They have been called to minister to others therefore they do what they can to ensure that they are prepared  for whatever situations they are faced with. Until it comes to minister tax issues. These are issues that they must deal with but usually aren’t prepared for.

Many minister tax issues are hinged on whether or not they are considered self-employed or an employee of their church. The difference between the two makes a big difference when it comes to yearly tax preparation, as well as how deductions… 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

Clergy Tax: Deductions for Pastors

In many cases clergymen are considered both an employee of the congregation as long as they are paid by a salary from the church. They may also be considered self-employed if additional tasks are performed that are outside the regular duties outlined by the salary agreement.

When it comes to clergy tax, if a pastor chooses to itemize deductions, there are certain deductions that they are entitled to including:

Work Expenses

A number of expenses can be incurred when performing the duties of a pastor. To properly itemize these deductions an IRS form 1040, Schedule A needs to be submitted.… Continue reading