Differences

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

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

Minister Tax Strategies

Ministers often go into the ministry because of their love for God and passion for people. Little do they know that the nuances involved in clergy taxes are often quite complicated, leaving them to wonder why they didn’t just become firemen or teachers. Clergymen need not let their passions be doused just because of complicated minister tax laws

Ministers find themselves in a distinct position when it comes to paying clergy taxes to the federal government, which considers them both employees and self-employed at the same time. As a result, it often behooves ministers to seek professional tax preparation help… 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 Taxes and Why They’re Different

Tax preparation for clergy members is a little different than it is for other workers. While employees in government or private jobs have Medicare, Social Security and income tax withheld, it is forbidden by law to withhold Social Security and Medicare taxes from a clergy member’s wages.

There are several requirements that must be met for the special clergy rules to apply. The minister must be licensed or ordained and have some managerial duties with a church or other house of worship. He or she must lead worship programs and have a leadership role. The minister also has to perform… Continue reading