If you are new to Ministry, it’s possible that you’ve never heard of self-employment taxes before, much less paid them. One common mistake for new Ministers is filing the 1040 without taking self-employment taxes into account, which can result in a big bill later when...
Housing Allowance
FAQ: Can I Use Nursing Home Expenses for the Housing Allowance?
For clergy who are living permanently in a nursing home, they can use some (but not all) of their nursing home expenses for the housing allowance. For example, the rental cost of their room and the utilities are eligible for the housing allowance. The food and medical...
Does the Mortgage for a Home That is Being Constructed Qualify for the Housing Allowance?
Question: Can I Deduct the Mortgage for a Home That is Being Constructed? Does it qualify for the housing allowance? Answer: The IRS allows for taxpayers to deduct all of the interest they pay on a construction loan within the 24 months before the home is completed....