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

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Earned Income Tax Credit

The question arises as to whether or not a minister’s housing allowance or the fair rental value of the parsonage is earned income for purposes of calculating the earned income tax credit, or EIC. The tax code is clear that … Continue reading

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No Annual Interest Statement from Board

Each year as participants begin to get all their tax information together, they realize that they have not received a Form 1099-INT from the Benefits Board showing the amount of interest they earned on their retirement account during the previous … Continue reading

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Important Tax Information for Retirees

If you are receiving benefits from the old Aged Ministers’ Fund, you will not receive an IRS Form 1099 from Lincoln National Life Insurance Company or the Church of God International Office. They will not send you anything – just … Continue reading

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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 to Form W-2) in recommending that Box 14 be used to … Continue reading

Posted in 01 - January 2014, Form W-2, Ministerial Housing Allowance | 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 2014, Form W-2, Ministers, Tax Information | Leave a comment

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 tax forms for filing your income taxes. … Continue reading

Posted in 01 - January 2014, Form 1099, Form W-2, Tax Information | Leave a comment

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

Posted in 01 - January 2014, 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 2014, Form W-2, Retirement Contributions, Tax Information | Leave a comment

More W-2 Tips

A W-2 form must be issued to any employee (including ministers) who received compensation from the local church during the previous tax year. In completing the forms, here are a few tips to remember: The W-2 forms must be completed … Continue reading

Posted in 01 - January 2014, Form W-2 | Leave a comment