Because clergy are exempt from tax withholding on their paychecks, they will usually need to make Estimated Tax Payments throughout the year to ensure that their taxes are paid. If you don’t do it, it can result in penalties. If you expect to owe at least...
Meals related to ministry activities can be deducted for tax purposes under certain conditions. The relevant IRS guidelines and criteria for deducting such expenses, including specific requirements or limitations that apply to clergy or ministers, are as follows: Ordinary and Necessary Business Expenses: Under § 162(a) of...
The IRS guidelines on designating a housing allowance for clergy are detailed and specific. Here is a comprehensive overview: Designation of Housing Allowance Advance Designation Requirement: The housing allowance must be officially designated in advance of payment by the employing church or other qualified organization....
Back in April 2024, the US Department of Labor published a rule requiring all employers (including churches) to increase the minimum salary threshold for exempt workers in both July 2024 and January 2025, with regularly scheduled increases after that. However, in mid-November 2024, after the first increase...
To set up a Qualified Charitable Distribution (QCD) from your IRA to a qualifying charity, follow these detailed steps and ensure you meet all IRS guidelines, limitations, and restrictions: Steps to Set Up a QCD Verify Eligibility: Age Requirement: Ensure you are at least 70½...
A common method for determining the fair rental value of clergy housing is using a fixed percentage, like 12%-15% of the current home value. However, this method may be inaccurate. The IRS and tax courts typically recommend using methods such as the comparable fair rental...
Ministry dues can qualify as a professional expense under the Internal Revenue Code if they meet certain criteria. According to the Internal Revenue Code and relevant regulations and rulings, the deductibility of such expenses depends on whether they are considered ordinary and necessary business expenses. ...
When your board declares your annual clergy housing allowance, they must declare a specific dollar amount or percent as the housing allowance. The designation must be made in advance of the payment. A general declaration that you have a housing allowance without naming a specific...
There is an appeal process for being denied the 4361 minister exemption. If a minister, member of a religious order, or Christian Science practitioner is denied the exemption from self-employment tax under section 1402(e), they have the right to an administrative review and appeal process. Initial...
California youth service organizations are now required to comply with newly amended regulations under California Penal Code §11105.3 which builds upon the foundation of California Business and Professions Code §18975 (AB 506). Key legislative changes include: Mandatory national (FBI) criminal history checks Annually signed waivers authorizing...