IRS Tag

The Economic Mobility Act of 2019 would repeal section 512(a)(7), which imposes a 21 percent tax on expenses incurred by tax-exempt organizations for providing transportation benefits to their employees. The bill was approved by the House Ways and Means Committee on June 20. While there...

When someone legally changes their name, there are tax consequences they need to know about, especially at tax time. People change their names for several reasons: Taking their spouse’s last name after a marriage Hyphenating their last name with their spouse’s after getting married Going...

The Self-Employment Taxes that most members of the Clergy must pay quarterly are actually made up of two different taxes: Old-Age, Survivors and Disability Insurance (also known as “OASDI” or the more commonly used term “Social Security”) Medicare taxes   OASDI taxes are calculated as 12.4% of...

WASHINGTON – The Internal Revenue Service issued a draft of the 2020 Form W-4, Employee's Withholding Allowance Certificate (PDF), that will make accurate withholding easier for employees starting next year. The revised form implements changes made following the 2017 Tax Cuts and Jobs Act, which made...

The Freedom from Religion Foundation, or FFRF, has decided not to pursue an additional challenge of the clergy housing allowance at the Supreme Court level. This means that clergy housing and parsonage allowance provisions will likely remain in place for tax year 2019 and beyond. For...

When a church hires an employee, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. Ministers have what is...

WASHINGTON – The Internal Revenue Service today reminded taxpayers who pay estimated taxes that Monday, June 17, is the deadline for the second estimated tax payment for 2019. Examples of those who often need to pay quarterly estimated taxes are self-employed individuals, retirees, investors, and some...

The Affordable Care Act (also called ACA, federal health care reform or sometimes “Obamacare”) expands health coverage to millions of previously uninsured Americans and makes significant changes to health insurance practices nationwide. The Health Insurance Marketplace is an online resource for comparing different plans and benefits...

The IRS has ruled that clergy are self-employed for purposes of paying social security taxes. This means that they must pay both the employee and the employer share of social security tax under the Self-Employed Contribution Act (SECA). Churches are prohibited from paying FICA tax for...