New Overtime Laws Could Affect Church Employees

The US Department of Labor announced that they had finalized a new law that has extended overtime benefits to nearly 4.2 million working Americans. Starting December 1, 2016, salaried employees that make less than $47,476 ($913/week) per year will be eligible for overtime pay if they work more than 40 hours in a work week….

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How Can Clergy Pay Estimated Taxes?

How to pay estimated tax. You normally make estimated tax payments four times a year. The dates that apply to most people for 2016 are April 18, June 15 and Sept. 15. There is one last payment on Jan. 17, 2017. You can pay online, by phone or from your mobile device. Direct Pay is…

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Is your Gift Taxable?

If you gave money or property to someone as a gift, you may wonder about the federal gift tax. Many gifts are not subject to the gift tax. Here are six tax tips for gifts and the gift tax. Nontaxable Gifts. The general rule is that any gift is a taxable gift. However, there are…

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Fighting Tax-Related ID Theft

When is a Web site not a Web site? – When it’s a “spoofed” site -– one that’s designed to mimic an official site, so that victims can be lured into divulging private information through it. Often scammers send an e-mail asking users to verify personal information, with a convenient link to the spoofed site….

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Professional Dues vs Contributions

Ministers often pay a small annual renewal fee to maintain their credentials–this is a deductible ministry expense. However, ministers’ contributions to the church are not deductible as ministry expenses. These are deductible only as charitable contributions. The difference is that charitable contributions are a personal itemized deduction on Schedule A, while ministry deductions are directly…

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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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Don’t Rush to File Your Return!

Instead of rushing to April 15 to file your taxes, you can file an extension. There’s no shame in an extension, and millions are processed every year. Everyone with an April 15 deadline can get six extra months by filing an extension form. You need to pay what you owe–the extension is to file your return…

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Down Payment Qualify for Housing Allowance?

A down payment on a home may be excluded from income as a housing allowance, assuming it does not exceed housing limitation. You can exclude the lowest of the following three amounts from income for federal income tax purposes when the church or pension properly designates a housing allowance: The housing allowance designated by the…

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Is Clergy Auto Allowance taxable?

An auto or gas allowance is a cash payment given to you each pay period by the church for the purpose of covering your automobile ministry expenses. When you receive an auto allowance, it is considered taxable “compensation” and included with your wages reported in Box 1 on Form W-2. Federal tax law allows you…

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Benevolence Funds

Benevolence gifts are given to needy individuals or families. Benevolence gifts made directly by a donor to needy individuals are not deductible. To qualify for a charitable deduction, contributions must be made to a qualified organization.

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