taxable income

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

2012 Taxes: A List of Miscellaneous Pastor Business Expenses

From moving expenses to personal computer expenses, there are a number of miscellaneous business expenses that pastors can deduct from their federal income tax liability when preparing their 2012 taxes. These include an array of church-related travel and transportation expenses, entertainment and home office expenses.

Here is a list of other expenses to keep in mind for tax preparation this year that is generally tax deductible.

Contributions to a Religious Organization

Contributions made by the pastor to the church are deductible as charitable contributions on Schedule A. If donations are required of the church leader, then these donations are deductible… Continue reading