By now, there is a good chance your W-2's, 1099's and a wide variety of other tax documents have or will arrived in the mail and taxes are sure to be on your mind. April 15th deadline to file your return will be upon us faster than you think.
In a recent survey, 34% of respondents said that they start working on their taxes in January. We applaud all of you early birds and we want to encourage the rest of you to follow suit.
Before you can complete your tax return, you'll need to gather up your tax documents. For many of you, that means Form W-2 which reports your wages and tax withholdings. You may also need information from various 1099 forms that report bank interest, dividends, or other types of income.
We all go through the painstaking process of doing our taxes. For those who want to get it over with now,
Clergy Financial Resources have some simple steps you can take that will take some of the stress out of tax season.
Trust us, tackling tax season in bite-sized chunks will make the whole process much less daunting and save you a lot of time and headache down the road. Here are a few simple, painless tricks that can give you a big head start on your taxes now.
Step 1 - Create a system for organizing tax documents as they come in.
There is nothing worse than sitting down to do your taxes, then realizing that you have to start scouring through the house because you can't find an important document. The key is to have a system in place before the first tax document ever shows up at your house. Your system can be as unsophisticated as a large envelope or an accordion file. Just designate a spot and make sure that everyone in the house knows about it.
Step 2 - Review all tax documents as they come in.
As tax documents show up, don't just stuff them into that great new tax record keeper. Take a moment to review each document as it comes in so that you can correct discrepancies well before you start preparing your return. If there is a mistake, getting a corrected W-2 or 1099 form can take time, so don't wait until you are down to the wire.
Sixty percent of clergy W-2 forms are issued in error by churches and payroll companies. This is created by the lack of understanding of the reporting requirements of taxable income, how to handle various housing situations, reimbursement and allowance plans, and the elements of clergy compensation. Please review your church W-2 form and verify the numbers are correct. If your church is unable to complete your W-2 correctly, filing your W-2 is only a click away.
Tax Statement W-2s from your employers 1099-MISC forms for self-employment income 1099-INT (interest) 1099-DIV (dividends) 1099-B forms showing security trades K-1 forms for income from a partnership or trust 1099-SSA showing Social Security received. 1098E - Student loan Interest 1098 - Mortgage interest statement
1098T - Tuition Statement
Step 3 - Make sure that you are aware of the new tax law changes that could impact your taxes.
Every year sees new tax changes. As the government tried to save the economy, tax credits and rebates were flying. Cash for Clunkers, the homebuyer's tax credit, energy rebates.... be sure that you are aware of the new tax rules so that you can take advantage of every credit and deduction possible.
Pending
Step 4 - Decide to use a clergy tax professional - Clergy Financial Resources.
Thanks to our complicated tax code even the current IRS Commissioner recently admitted that he hires professional tax help. About 80% of clergy use a tax professional to help prepare their taxes. Clergy must understand these challenges and recognize the need for industry specialists.
Ministers are treated differently under the tax code than virtually anybody else in the country. They have advantages and disadvantages that no one else has. Often, confusion exists concerning clergy compensation, deductions and expenses. Our clergy tax professionals can sort out the complexity of clergy tax law. We will do all the tedious work that eats up your valuable time. When you use a clergy tax professional, make your appointment early.
Step 5 - Order your Clergy Tax Organizer
Each year, we publish a new tax organizer, which is designed to be used as a learning tool and reference guide. This organizer will assist you in gathering the information needed to prepare your current tax return.
Click the following link to order your Clergy Tax Organizer, After your order is processed, you will be able to download the 2011 organizer. There is a fee to order the Clergy Tax Organizer, which is required to complete your tax return. However, this fee will be applied against your tax preparation charge and is not an additional cost.
Compile all your tax records and receipts and complete the organizer. We suggest you review the entire organizer and answer all the questions that apply to you. Your return will be prepared primarily from this data. You can then mail or fax your completed organizer and any other pertinent tax material needed to complete your return.
This clergy tax organizer is your assurance that you won't miss any important tax information and is the most comprehensive organizer available to clergy. The Internal Revenue Service has recognized this organizer as one of the most thorough available.
We will contact you during the final review to clarify and review the organizer and other tax related information. This will be the final stage to complete your return. Your completed tax return will be uploaded to your personal CyberCabinet for your review, then e-filed to the IRS and your state.
Step 6 - Start gathering your tax information now.
There's no reason to wait until the heat of the battle to start organizing the tax information that you already have. Make a list of all your tax payments and tax refunds, comb through your credit card bills and checkbook to look for possible deductions, tally up charitable donations and collect all the Social Security numbers you'll need in one place.
Step 7 -Start early
There's no sense in putting off the inevitable. Use these tips to get a big head start on the tax season now and save yourself headaches as the tax deadline looms.
Your recordkeeping system, clergy tax organizer, receipts and others deductions are critical to help you minimize your tax liability for this coming year — and help you understand the categories to manage your taxes in the years to come.
Each year, we hear a few dozen times “is it too late to call, are you too busy?” Let me take this opportunity to express that our clergy tax professionals are quite busy during tax season, but we plan for that! Do not hesitate to call an expert, even if it's April 15th! We are here to help, and it's always better to prepare your return correctly the first time, even if it means filing an extension, then to have unanswered questions because you don't want to interrupt our busy time.
At Clergy Financial Resources, we'll give your taxes the personal, confidential, professional attention they deserve. . No matter where you reside, we are available to serve you. Try us and see
We have several convenient ways to assist you.
For more information or if you prefer to make an appointment over the phone or need additional assistance, please contact us at 763.425.8778 or cfr@clergytaxnet.com. Thank you |
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Clergy Financial Resources
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