Tax documents are currently arriving in mailboxes and inboxes, reminding us all that tax season is rapidly approaching. This article will give a brief and broad overview of what credits and deductions are all about. The federal tax code allows for certain “credits” and...
Is your nonprofit subject to the FLSA? The answer isn't a simple yes or no. Nonprofits fall into a special category, but fortunately, the Department of Labor has provided guidance in this area. In brief, says the DOL, there are two ways in which an employee...
Nearly all the approximately 1.74 million organizations recognized as tax exempt by the IRS must file Form 990 or another form in the same series annually. Organizations making less than $200,000 in revenue and having less than $500,000 in assets must file Form 990-EZ, and...
Springtime in the ministry world is all about getting ready for Easter, but now that Easter is over, we can all take a collective breath as we refocus our attention to the rest of 2022. If you haven’t already begun to jump into your spring cleaning,...
These are examples of sources of income that are non-taxable: Qualified love gifts (person-to-person and within limits) Cannot be solicited Must be spontaneous in nature Must be clearly ascertainable as a gift with no service attached Cannot qualify as a tax donation for the donor Are motivated out of affection of...
Even though organizations like charities and foundations may be tax-exempt, the IRS still requires them to file certain information every year. For many of these exempt organizations, the deadline to file their 2021 information return is Monday, May 16, 2022. Here are the forms they may...
Many religious organizations have made fixed sum monthly payments to their minister or other staff for a “travel or professional allowance” and do not request an accounting for how the money was spent. Allowance plans are always taxable are reported on Form W-2. It is strongly...
Before you make your musician, tech guy, or childcare worker an independent contractor, check to see if they meet this test! The Biden administration has yet to determine the test for defining employees from contractors. But they are leaning towards California’s “ABC Test,” which really...
As tax season comes to a close and your ministerial staff starts getting their returns, they might want to re-think their housing allowance for 2022. Here’s a quick “how-to” to simplify that process! To satisfy IRS requirements, churches are responsible for 3 key things: Determine Eligibility. Ordained, licensed,...
While ministers are employees for federal income tax reporting purposes, they are self-employed for Social Security purposes with respect to services they perform in the exercise of their ministry. This means that they must pay both the employee and the employer share of social security tax...