Category Archives: 01 – January 2015

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

Posted in 01 - January 2015, Informational Manuals, Internal Revenue Service, Ministerial Housing Allowance, Ministers, Tax Information | Leave a comment

Charitable Gifts under $250 to Churches

Most church treasurers and donors are familiar with the current law concerning substantiation of gifts given to churches. If a donor gives any one gift that is in excess of $250, the church must provide a receipt to the donor … Continue reading

Posted in 01 - January 2015, Charitable Gifts, Informational Manuals, Internal Revenue Service, Ministers, Tax Information | Leave a comment

Charitable Acknowledgement

As a pastor, clerk, or church treasurer, you should make sure that any person who contributed more than $250 to your church within the year in a single gift gets a letter of acknowledgement from your church at least by … Continue reading

Posted in 01 - January 2015, Charitable Gifts, Informational Manuals, Internal Revenue Service, Ministers, Tax Information | Leave a comment

Tax Reporting and the Housing Allowance

Although the IRS instructions for Form W-2 do not require that the “fair rental value” of the parsonage be reported on the W-2, the Board joins the IRS (Instructions for Form W-2) in recommending that Box 14 be used to record this … Continue reading

Posted in 01 - January 2015, Ministerial Housing Allowance, Ministers, Tax Information | Leave a comment

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

Posted in 01 - January 2015, Internal Revenue Service, Ministers, Tax Information | Leave a comment

Online Filing of Forms W-2 & W-3 plus other Additional Tax Tips

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 www.socialsecurity.gov/employer/. On the website, you will need to select “Business … Continue reading

Posted in 01 - January 2015, Credit Information, Form 1099, Form W-2, Internal Revenue Service, Tax Information | Leave a comment

Tax Treatment of Retirement Plan Contributions

As for retirement contributions, whether such are reported or not on the participant’s Form W-2 depends on whether the contribution was made by the church or by the pastor/staff person through salary reduction. In the Treasurer’s Manual, we answer this … Continue reading

Posted in 01 - January 2015, Form W-2, Informational Manuals, Ministers, Retirement Contributions, Tax Information | Leave a comment