Unreimbursed Professional Clergy Expense

If your church does not reimburse you for your out-of-pocket ministry-related expenses, you can deduct them on your return. They are deductible only if they are ordinary, necessary, and reasonable ministry expense. Please find a few examples below. Ministry-related travel, transportation, meal, and entertainment expenses Professional liability insurance premiums Computer or cellular telephone your church…

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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…

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When Are Purchases Made With a Credit Card Deductible

The deduction for housing and ministry business expenses purchased with a credit card is taken in the year of the purchase, regardless of when the credit card bill is paid. There are two distinct but similar-name concepts here: “paid for” (in relation to a expense) and “paid off” (in relation to a debt). These both…

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What should I know about Ministry Expenses

If you paid for ministry-related expenses out of your own pocket, you may be able to deduct those costs. You can only deduct unreimbursed ministry expenses that are ordinary and necessary to your ministry as an clergy employee. An ordinary expense is one that is common and accepted in your industry. A necessary expense is…

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Ministry Expense App to Help You Track Your Receipts.

Shoeboxed (iOS, Android, Web) is a beautiful app that does one thing really well: It collects receipts. With Shoeboxed, you can easily snap pictures of receipts and the app extracts the vendor, total amount, payment method, date and also categorizes into the most common tax categories. More than 1 million businesses use Shoeboxed to scan and organize their receipts…

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Using a Church Credit Card?

Churches often provide their employees with church credit cards. The church should have a credit card policy which indicates the card should never be used for employee’s personal expenses and should only be used for ministry related expenses. If personal expenses have been paid with this card, these amounts do need to be reported as…

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Deducting Clergy Professional Expenses on Your Tax Return

If you itemize deductions and are an employee of the church, you may be able to deduct certain ministry-related expenses. Clergy Financial Resources has put together the following facts to help you determine some of the expenses that may be deducted as a ministry expense. Expenses that qualify for an itemized deduction include: Advertising Bank…

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