Are gifts for performing baptisms, weddings or funerals taxable?
Though they may be called “gifts” or “tokens of appreciation”, any money or gifts you receive for performing services like baptisms, weddings or funerals are actually considered taxable income in the eyes of the IRS and should be reported on your tax return. If you don’t want the additional income or tax that results from…
Can my severance pay be designated as housing?
Whether it is through resignation or retirement, a Church may agree to pay severance pay when a Minister leaves a position. In almost all cases, this severance pay is considered taxable income to the pastor or minister. The question then arises- could you designate this severance pay as housing? This is actually a question of…
Can Construction Costs be used for the Housing Allowance?
If you’re building a new home or you’re renovating an existing home, you may be wondering: Can I include these construction expenses for my housing allowance? The IRS and federal tax courts have been very clear that Ministers are only permitted to use one residence for the housing allowance. If you have two homes, you…
What’s next for PPP?
When the House convenes next Wednesday, it is expected to vote on the Paycheck Protection Program Flexibility Act, a standalone bill that would, among other things, lengthen the time churches may spend the funds from their PPP loans. The bill would also eliminate the requirement that 75 percent of a loan’s proceeds must be spent on…
Do I have to make estimated tax payments?
The United States has a “pay as you go” tax system. The IRS expects payment of income tax and other taxes throughout the year, rather than receiving a lump sum payment. For most people, this is covered by W-2 withholding, but members of the clergy are exempt from mandatory withholding. You must make estimated payments…
IRS Sending Out New Coronavirus Stimulus Debit Cards
If you are still expecting to receive stimulus payments from the IRS in the form of a paper check, there may be a surprise coming in their mailbox soon. The U.S. Treasury Department has announced that the IRS will begin sending out stimulus payments on prepaid debit cards instead of mailing paper checks. With these…
Now Available – Paycheck Protection Program Loan Forgiveness Application
The Treasury Department has released the Paycheck Protection Program (PPP) Loan Forgiveness Application. Click here
Is It Time for A New Clergy Tax Advisor?
Selecting a tax advisor or accounting firm may seem easy at first. There are two types of professional services within our industry. The first type is called a “Generalist”, which prepares any and all returns for the public at large. They may have a limited number of clergy returns or none at all. They do…
Video – When will in-person worship open – Dr. Michael Osterholm
Dr. Michael Osterholm – Pandemic and reopening in-person worship. This video was presented through the Minneapolis Synod. Dr. Michael Osterholm Dr. Michael Osterholm on the pandemic and reopening in-person worship Posted by Minneapolis Area Synod, ELCA on Tuesday, May 5, 2020
5 Commonly Asked Stimulus Tax Questions
The COVID-19 outbreak has hurt the U.S. economy to a degree beyond what many of us could have imagined. Thankfully, the $2 trillion CARES Act has already been providing relief in the form of $1,200 stimulus payments that started hitting Americans’ bank accounts in April. But there’s still a lot of confusion surrounding those stimulus checks, so…
