Church Tag

If your Church is paying for your ministry-related expenses, it is important to know if you are being paid under an Accountable plan or a Non-Accountable plan. It has a huge impact on your 1040 taxes. Under an Accountable plan, you are reimbursed for expenses. If...

Can churches classify paid workers as independent contractors to avoid paying FICA or withholding income taxes from them?   No. Churches cannot classify paid workers as independent contractors in an effort to save money. They must follow the law. For a non-clergy employee, the church generally must withhold...

Organizations that want to apply for recognition of tax-exempt status under Section 501(c)(3) of the tax code use a Form 1023-series application. Here are some tips to help them understand the process. • The application process on IRS.gov includes a step-by-step guide explaining how to apply...

If you are a minister, chances are you spend a lot of time on the phone, especially during the Pandemic. Fortunately, ministers can deduct these expenses on their schedule SE, but there are several things you have to keep in mind. First, you have to be...

It's often assumed that nonprofits have no tax obligations at all, but that's not true. Nonprofits do get a lot of tax breaks, but managers of nonprofits still need to be well-versed in the tax code to make sure they're in compliance. Although most tax-exempt nonprofit...

For most churches, recruiting volunteers is crucial to the success of your mission. Though a lot of effort goes into this recruitment process, it’s not always enough to keep those volunteers helping long term. Learning how to gather feedback from volunteers will allow you to...

For those just starting as Clergy, you may not be familiar with how clergy taxes are paid.  The United States has a pay-as-you-go tax system. This means that the Internal Revenue Service expects you to pay your taxes throughout the year, rather than just making...

Is a Minister's Social Security Allowance Taxable?   Yes.  Unlike non-clergy employees, clergy do not have Social Security or Medicare taxes taken out of their paycheck. The Church also does not pay any matching portion to IRS, so the Minister has to pay both halves, the employee...

I worked on staff at a church for 10 years and what I found interesting is that most people (who don’t work in ministry) have the perception that you sit around all day reading the bible and listening to praise and worship music. Anyone who has...