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Category Archives: Form W-2
Most Common Mistakes on Tax Returns
If you have not yet filed your tax return, you should be aware of some common mistakes that the IRS says occurs on tax returns. These simple mistakes could delay the processing of your return or delay your expected refund. … Continue reading
Reporting Contributions by Chaplains and Evangelists
Chaplains and evangelists are the only participants in the Ministers’ Retirement Plan who can make direct contributions by personal checks to their retirement accounts. All others must make their contributions by salary reduction or by employer contributions through an employer … Continue reading
No “Two Home” Housing Allowances
In a December 2010 decision, the United States Tax Court, in a case involving a Cleveland, Tennessee minister, took a totally different approach in dealing with a minister’s assertion that he could claim two homes under the ministerial housing allowance … Continue reading
Parsonage / Housing Allowances – IRS’s Perspective
The following article is directly reprinted from the Internal Revenue Service’s Tax Guide for Churches and Religious Organizations (Publication 1828). You may access the entire publication by clicking here: “Generally, a minister’s gross income does not include the fair rental … Continue reading
Ministers Should Not Deduct Tithes Pre-Tax
Following guidance given in an unpublished Tax Court decision from 1992, some ministers continue to contend that the tithes they pay to the local church should be treated as a business expense rather than as a charitable deduction. If a … Continue reading
Helpful Hints When Choosing a Tax Return Preparer
While most tax preparers provide excellent service to their clients, the IRS urges taxpayers to be very careful when choosing a tax preparer. You should be as careful as you would in choosing a doctor or a lawyer. It is … Continue reading
Travel Expenses for a Spouse
When a pastor or church staff person travels on business for the church, the spouse of that person often travels with them. For example, a pastor may attend a conference on behalf of the church and the pastor’s wife may … Continue reading
Tax Withholdings for Ministerial Staff
Much has been written about the “dual” tax status of ministers. In very simplistic terms, ministers are viewed by the IRS as an “employee” for federal income tax purpose but as “self-employed” for Social Security purposes. This dual status creates … Continue reading
Additional Tax Tips
During the holiday season in years past, each taxpayer use to receive another package in the mail from their favorite uncle. Yes, “Uncle Sam” would send a package immediately after Christmas that contains your tax forms for filing your income … Continue reading
Online Filing of Forms W-2 and W-3
Churches and other church-related employers, along with other businesses, may file Forms W-2 and W-3 electronically by visiting the Social Security Administrations’ website at http://www.socialsecurity.gov/employer/. On the website, you will need to select “Business Services Online (BSO)” and register as … Continue reading
