Avoid a Tax Audit with Unreimbursed Ministry Expenses
Most of the time, clergy get reimbursed by their church for any ministry/business expenses they pay for themselves. As a result, the IRS looks carefully at unreimbursed ministry/business expenses. Many items are potentially deductible, including dues and license fees, subscriptions to subscriptions and publications related to your ministry, supplies, and professional clothing. Yet the temptation among…
Tax Deduction That Could Lead to an Audit
Getting audited can be the worst nightmare for clergy, but that shouldn’t stop you from taking advantage of the tax deductions you’re legally entitled to take. You should just take care to make sure you have the documentation you need to back up your deduction if the IRS decides to take a closer look at your return….
Opting Out of Social Security
A minister who wishes to be exempt from social security/Medicare tax must file a Form 4361 with the IRS for approval. Before your application can be approved, the IRS must verify that you are aware of the grounds for exemption and that you want the exemption on that basis. IRS Form 4361 When your completed…
Energy Property Tax Credit
Equipment and materials can qualify for the Energy Property Credit only if they meet technical efficiency standards set by the Department of Energy. The manufacturer can tell you whether a particular item meets those standards. For this credit, the IRS distinguishes between two kinds of upgrades. The first is “qualified energy efficiency improvements,” and it…
Donating a Car to a Charity?
It’s easy to donate a car to charity if all you want to do is get rid of it. Simply call a charity that accepts old vehicles, and it will tow it away. If you want to maximize the benefits for both the charity and yourself, however, it’s more complicated. Until 2005, it was easy…
How to Update an Employee Handbook
How to Update an Employee Handbook for 2017 Churches should take note as a number of significant legal changes on the federal and state level have or will have a substantial impact on workplace policies and employee handbooks. Thus, it is essential for the church to review, amend and properly update its handbook for 2017 so that it reflects…
Preparing for Year-End and 2017 – Payroll Compliance:
Is your church concerned about payroll compliance? Beware, the IRS is hiring 700 new revenue agents whose only job will be to hunt down payroll-law violations. That means intense new scrutiny of your W-2s, 1099s, 1095s and other payroll tax reporting compliance. Last year, 60% of clergy W-2 forms were issued in error by churches and payroll…
New 2017 Health Reimbursement Arrangement (HRA)
21st Century Cures Act Signed President Obama signed the 21st Century Cures Act into law thus creating an option for small businesses to offer employees a health reimbursement arrangement (HRA) that is funded by the employer. Beginning January 1, 2017, the maximum employees can receive per year through the HRA is $4,950 for individuals who…
IRS Announces 2017 Mileage Rate for Churches
2017 Standard Mileage Reimbursement Rates The Internal Revenue Service has issued its 2017 optional standard mileage rates. Effective January 1st, 2017, the IRS standard rate will be 53.5 cents per mile driven for ministry or business purposes (The new rate is down from 54 cents per mile for 2016 because of lower gas prices. )….
Can We Accept Expired ID for the I-9?
Question A newly-hired employee cannot come up with proper identification for the Form I-9. He has presented an expired state ID, but no other documentation. I assume we can’t accept the expired documentation. Can we still have him work or should we let him go? Answer You are correct that you may not accept an…
