tax professional

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

Figuring Individual and Minister Taxes: Church Donation Tax Laws

Tis the time of year for charitable contributions for individuals, clergymen and churches, but how are charitable donations supposed to be accounted for in regards to taxes?  The IRS actually allows taxpayers to itemize their deductions to write off their donations to charitable organizations; however, the church or organization that is being donated to must meet IRS requirements.

In order to prevent people from taking advantage of this deduction they have created certain rules that govern the timing of donations, maximum allowable deductions and certain documentation is required.  When preparing individual as well as minister taxes, it’s important… 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

How to Make Sure Clergy Social Security Exemption is Approved

If they choose, clergymen are allowed social security exemption based on religious objections. However, in order for this to happen, they need to correctly fill out IRS Form 4361 in order to be exempt. It’s important that this form be filled out in an accurate and timely manner. Here are some tips on how to correctly fill out the form and reasons why it may be denied.

Unless they fill out a Form 4361 clergymen normally pay out social security taxes just like anybody else who is employed and earns taxable income. The IRS, however, allows church ministers to file… Continue reading

Gift Giving and Minister Tax Implications

Ministers do a great deal for their congregations. They offer an abundance of love, support and guidance for their parishioners, but above all else they teach and offer God’s love and words to those that need it most. For this reason, ministers often receive gifts from their congregation as tokens of their appreciation, these types of ‘love offerings’ often consist of cash or non-cash gifts and are often received throughout the year. These gifts are lovely sentiments, however, ministers need to keep in mind the minister tax implications that these types of gifts carry with them and how to properly… 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

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

Tax Services for the Modern Church: Claiming Tithes on Taxes

The concept of tithing consists of donating 10 percent of income to a church. This modern notion of tithing has been around for quite some time. Many believe that tithing began with the Old Testament example first recorded in Genesis, then again in the book of Numbers when tithing was included in Mosaic Law, with its purpose to provide for the Levites.

Despite how it began, tithing has been around for a long time and still remains an important aspect of modern religion. Tithing combined with tax services is a more contemporary concept. Modern tithing usually takes the form of… Continue reading