Honoraria income for clergy refers to payments received for services where a set fee is not legally or traditionally required. These services often include weddings, funerals, baptisms, and guest speaking engagements. Here are some key points to understand: Definition and Nature Honorarium: A voluntary payment...
If you missed a quarterly estimated tax payment, here are some steps you can take: Make the Payment as Soon as Possible: Even if it’s late, making it as soon as possible will help reduce any potential penalties and interest. The IRS may charge a penalty for...
Question: As a faith-based ministry, do we really need harassment prevention training? Answer: Some ministries may think, “That would never happen here.” But the reality is, harassment can happen anywhere, and prevention is crucial. In many states, harassment prevention training is not just recommended, it’s legally...
Determining which mileage is deductible for your ministry involves a few key steps: Identify Ministry Use: Ensure that the mileage you’re claiming is for business purposes related to your ministry. This includes travel for conducting religious worship, performing sacerdotal functions, and other ministerial duties. Commuting to your...
A minister cannot claim housing expenses for the months they are not employed as a minister. Section 107 of the Internal Revenue Code specifies that the rental value of a home furnished to a minister as part of their compensation, or a rental allowance paid to...
To determine if you can take a tax deduction for travel expenses that include both personal and business elements, you must evaluate whether the trip is primarily for business purposes and whether the expenses are ordinary and necessary in the conduct of your trade or...
A church office administrator should handle reimbursement for clergy through an accountable reimbursement plan. Here are the key steps to follow: Establish a Written Policy: Create a written expense reimbursement policy that outlines which expenses are eligible for reimbursement. This policy should include ministry-related expenses...
A minister’s housing (or parsonage) allowance under IRC 107 is excludable from gross income only to the extent it is used to rent or otherwise provide a bona fide “home”—that is, a dwelling place complete with the usual amenities (such as furnishings and, for example, a...
Yes, but keep in mind monetary gifts to employees are subject to special rules. Two main issues must be addressed: (1) whether the gift will create excessive compensation, and (2) whether the gifts given by individual(s) will be tax-deductible. It's wise to engage a compensation...
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...