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Financial Planning & Speaking Engagements With The Pastor’s Wallet’s Amy Artiga

by Monday, October 2, 2023
Picture of Christian financial planner Amy Artiga, CFP

I recently announced that I have obtained the Certified Financial Planner™ designation. As a result, I got a number of responses asking what kind of services I offer as a financial planner. One generous reader even wisely told me, “a more ‘aggressive’ tooting of your own horn would be appropriate.”

I hear you. Today I’m going to tell you about what I do beyond this blog, in case you want to be a part of it. 

Financial Planning Services

I offer financial planning services through Guide Financial Planning. This is a different company than Pastor’s Wallet and I do not own it. Financial planning and investment management is a very highly regulated industry so it requires a different business entity than the educational content I provide through Pastor’s Wallet.

I was originally planning on starting my own financial planning firm in order to have complete control over my schedule, who I serve, and how I serve them. I wanted a flexible schedule where I could put my family first and I didn’t just want to work with wealthy people‒I wanted to provide comprehensive financial planning for pastors and the middle class. 

Then I found Guide Financial Planning. 

At Guide, I have flexibility and get to do everything I want to do without having to go through the trouble and regulatory burden of starting my own financial planning firm. On top of that, I get to work with a wonderful team of people that have my back when I’m sick and help me out with my work and are also a joy to be around. Guide was serving pastors even before I showed up‒I consider it a match made in heaven.

Comprehensive Financial Plan

Through Guide Financial Planning, I offer three services; two of which are one-time engagements and one is ongoing. Our core initial offering is a comprehensive financial plan. This is a comprehensive overview of every area of your financial life, including cash flow and budgeting, retirement planning, investments, taxes, housing allowance, Social Security, estate planning, debt, and any other topic that is relevant to your situation. You can read a more in-depth description and see sample financial plans here.   

Quick Start Session

For those who are not ready for a comprehensive financial plan or just have a few key questions, I do something called a Quick Start Session. This is just a 1 ½ hour video call where I address your most pressing issues. Examples of that would be looking at retirement projections to see how long your money may last, analyzing what to do with an inheritance or how best to pay off debt, or even just a starter session for a new pastor where I can explain all of the uniqueness of clergy finance and help you figure out how it applies to your life. 

Ongoing Financial Planning

Those are the two one-time services that I provide. For those who do a comprehensive financial plan, they have the option of continuing with ongoing financial planning services. This is perfect for people who don’t like managing their finances on their own, need accountability in order to be a good steward, or want to make sure their spouse will be able to take things over as easily as possible if something happens to them. 

With this service, I will walk with you through life. We will meet twice a year and connect as often as you need in order to have confidence that you are on top of things and headed in the right direction. I can also manage investments for my ongoing clients, though that is not a requirement to work together. You can read more about ongoing financial planning here. 

If you are interested in any of the three financial planning services I just discussed, you can schedule a free introductory call to learn more and tell me about your situation here. Please only schedule a call with that link if you are actually interested in financial planning. For all other things, such as questions about how clergy finances work, please email me at amy@pastorswallet.com. 

Speaking Engagements

In addition to the financial planning services that I offer through Guide Financial Planning, I also do speaking engagements through Pastor’s Wallet. I love doing webinars for churches, denominations, and other groups. The fee for a 60-75 minute webinar that includes Q&A is currently $500. I do a very limited number of in-person speaking engagements for conferences and retreats, which you can email me about if you’re interested. 

People often ask me how I make money from Pastor’s Wallet since there are no ads. The truth is, I don’t really. The bulk of my income comes from financial planning through Guide FP. As far as Pastor’s Wallet is concerned, I only make money from speaking engagements and book royalties, which is enough to cover the costs of the website plus a little. I could probably make a lot more if I put advertisements on the blog, but I just find those so annoying that I don’t have the heart to do that to you. 

How Do You Know If You Need Financial Planning?

Let me end with a quick story. I grew up in Southern California. Once when I was a teenager, my friends and I stayed at the beach late and before we left a thick fog had rolled in from the ocean. By the time we got to our car, the fog was so thick that we could not see which way to go to get out of the parking lot. 

I ended up having to get out of the car and walk in front of it staring at the ground while my friend slowly rolled along behind me with the headlights on. We inched along for quite awhile until I found a curb and was able to follow it to the parking lot’s exit. Even now, decades later, I remember the emotions I experienced that night. It was incredibly unnerving not to be able to see where we were or what way we needed to go to get out of there. 

If that’s how you feel with your financial life, then you need a financial plan. A financial plan won’t change anything about your current situation. What it will do is lift the fog and give you a clear picture of where you currently are and what steps you need to take in order to go where you want to go in life. 



Here are some other articles you might find helpful:

What is Financial Planning?

What is Financial Planning for Pastors?

What Does the Bible Say About Financial Planning?

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What Is Form 4361 & What Is It Used For?

by Monday, September 25, 2023
Picture of Form 4361 with blog post title: What Is Form 4361 & What Is It Used For?


If you’re new to the ministry, you may have heard about Form 4361 from someone. Likely another pastor has mentioned it and told you that it will save you a lot of money. What is this mysterious money-saving piece of paper?

What Is Form 4361?

Form 4361 is an IRS document that is used by ministers to opt out of public insurance programs. You can view the form itself here. Its official name is Application for Exemption From Self-Employment Tax for Use By Ministers, Members of Religious Orders and Christian Science Practitioners, which is why most people just refer to it as Form 4361.

The title references being exempt from self-employment tax because that is what is used to fund the public insurance programs Social Security and Medicare. An exemption means you don’t have to pay the taxes but you also don’t get to benefit from the programs (based on your exempt ministerial income).

The form includes your personal information, contact information, and also the information for the church or body that ordained, licensed, or commissioned you. You also have to give information regarding the date you were ordained, licensed, or commissioned, and when you have received $400 or more in self-employment income, at least some of it as compensation for ministerial services. That is because you have a limited time in which you are eligible to file the form and claim an exemption.

The Opportunity To Opt Out Of Self-Employment Taxes

As already mentioned, self-employment taxes are the 15.3% that ministers have to pay to fund Social Security and Medicare (even if you’re an employee of a church). Social Security is the safety net program that the US government developed in response to the crisis of the Great Depression. It has evolved over the years and now provides retirement benefits, survivor benefits, and disability benefits. Medicare is the program that provides healthcare for Americans over age 65.

Unlike most everyone else, pastors have the option to opt out of participation in these programs, and therefore, their taxes. Don’t you feel special?

Not all pastors can opt out, though. You can only opt out if you can sincerely say, “I am conscientiously opposed to, or because of my religious principles I am opposed to, the acceptance (for services I perform as a minister, member of a religious order not under a vow of poverty, or Christian Science practitioner) of any public insurance that makes payments in the event of death, disability, old age, or retirement; or that makes payments toward the cost of, or provides services for, medical care. (Public insurance includes insurance systems established by the Social Security Act.)”

Why Would A Minister Opt Out?

It is illegal to opt out for economic reasons. The IRS makes that very clear. A legal exemption is based on one of two things:

  1. Conscientious opposition to the acceptance of public insurance
  2. Religious principles that oppose the acceptance of public insurance

So, it has to be either your conscience or your religious principles that drive the decision. The decision itself is about public insurance, which encompasses Social Security and Medicare.

I know a lot of pastors who opt out do so on the basis of the principle of stewardship. Everything we have is God’s and we are instructed to manage it wisely. Giving it to the government to mismanage is not good stewardship.

The Bible says that “a good person leaves an inheritance for their children’s children.” (Proverbs 13:22, NIV) Because of this, some pastors feel that it is wrong to prepare for the future by putting money into a system that won’t leave an inheritance for your children when you can easily save in a way that does.

For others, they equate accepting public insurance as relying on the government for provision instead of God. Dependence on the government violates their conscience and religious principles so they have grounds to request an exemption.


Warnings For Ministers Who Opt Out Of Social Security

Whether or not you choose to opt out is a personal decision that you need to pray and think deeply about. You will find some very strong opinions on the matter online, but I’m not here to tell you what decision to make. I do need to warn you, though, of the consequences of your decision.

If you choose to opt out of Social Security, you need to make up for the benefits the program provides on your own. You need to provide your own retirement savings, life insurance, and disability insurance. You can read all about how to do that here.

Some other articles that you might find useful are:

Opting Out Of Social Security: A Step By Step Guide

What You Need To Know About Social Security Even If You’ve Opted Out

Can You Still Receive Social Security Benefits Even After Opting Out?

How Medicare Works For Pastors Who Have Opted Out Of Social Security

Can Pastors Opt Back Into Social Security?

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What is a Social Security Offset & How Does It Work?

by Monday, July 31, 2023
Picture of a chalkboard with calculations and blog post title: What is a Social Security Offset & How Does It Work?

As you probably know if you read this blog (or can find out here), pastors have to pay both the employee and employer portions of Social Security and Medicare taxes as if they were self-employed. Those Social Security and Medicare taxes are also called SECA taxes, which is a lot faster to type so that’s what I’m going to call them from here on out. 

What Is A SECA Offset?

Some churches feel kind of bad that their pastors have to pay twice as much in SECA taxes than any other employee in the US. Since they aren’t allowed to pay SECA for their pastors, they instead pay them a little extra to cover the cost of the tax. That extra pay is called a SECA offset or Social Security offset. 

Even though it’s called a SECA offset, it’s technically just additional pay. In the eyes of the IRS, it’s just more taxable income. Even the church doesn’t really have any control over how the pastor uses that money. Unless the pastor is into tax evasion, though, I don’t think churches need to worry about whether or not it’s going towards SECA. 

How To Calculate The SECA Offset

When a church decides to pay their pastor a SECA offset, the next question is how much it should be. This is more complicated than it sounds. If you google it or read finance articles, you will see that usually the employer pays 7.65% and the employee pays 7.65% and pastors pay 15.3% SECA. But that’s not exactly right.

When you look at Schedule SE, which is the tax form used to calculate SECA, you’ll see that that tax rate is only applied to 92.35% of income. That means 7.65% is SECA-free. If you calculate that out, it means that half of a pastors SECA taxes are only really 7.0648% of the pastor’s income. 

Wait, that’s not all. The SECA offset is subject to federal and state income taxes as well. That means the SECA offset will increase the pastor’s income tax liability. Does the church need to offset that as well? It’s up to the church!

Whereas the SECA calculation is the same for everyone, different pastors are subject to different income tax rates. A pastor with a stay-at-home spouse may be in a 10% tax bracket while a pastor married to a cardiologist could be in a 35% tax bracket. Should the church calculate each SECA offset differently depending on the individual pastor’s tax situation?

How Much Should Churches Pay In SECA Offset?

I think if you ask the church to get that granular and specific, they’ll just give up on paying a SECA offset altogether!

My advice would be to just pick a calculation method and stick with it for everyone. Whether you do 7.65% or 7.0648% or something higher to help with income taxes, it doesn’t really matter a lot. The difference between 7.65% and 7.0648% of $100,000 is only $585. And most pastors don’t even make $100,000 so their difference would be even less. 

Pastors, don’t complain about tenths of a percent. Just be grateful your church is helping you out with this, many pastors don’t get any kind of offset. Churches, just pick something that won’t be too complicated for your poor volunteer treasurer and make her want to quit. How about a nice round 8%? 

If you get paid a SECA offset, let us know the calculation your church uses in the comments!

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You Just Had A Baby. Now What?

by Monday, July 3, 2023
Picture of baby feet with blog post title, you just had a baby. Now what should you do?

Having a baby comes with a lot of responsibility and a long to-do list. Here are the things you should do legally and financially to set yourself up for success once your little one arrives.

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Should I Invest My 403(b) (Or IRA) In A Target Date Fund?

by Monday, June 5, 2023
Picture of man throwing a dart with blog post title: Should I Invest My 403(b) (Or IRA) In A Target Date Fund?

This post mentions some specific investments. They are only examples and not an endorsement of those investments.

Perhaps the most difficult, or at least most intimidating, thing about saving for retirement isn’t finding money to set aside, but rather choosing how to invest that money. After all, 1 in 5 Americans who aren’t invested in the stock market says it’s because they “don’t know enough.”

What Is A Target Date Fund?

Because of this, in 1994, a new kind of mutual fund was created: the target date fund (TDF). It is a kind of investment designed so that you can just put your money in and forget about it until it’s time to take your money out. You will recognize them because they have a future date in their name, like LifePath Index 2040 Fund or T Rowe Price Retirement 2040 Fund.

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How Pastors Can Find Free Getaway Lodging for Sabbaticals or Vacations

by Monday, May 15, 2023
Picture of a mountain cabin with blog post title: How Pastors Can Find Free Getaway Lodging for Sabbaticals or Vacations

This is a guest post by Jon Neal, Executive Pastor of Hope Community Church in Minneapolis, MN. He has nothing to sell or promote, he just spent a lot of time researching this and thought he would share his efforts to be a blessing to you. 

There is something very powerful in getting outside your normal context. Maybe you have an upcoming sabbatical. Or maybe you are looking for a place to take a quiet/planning retreat. Or maybe you’re just looking for a place to take the family for a few days. There’s just one problem – lots of those options cost a lot of money!

While you could still scour Airbnb or VRBOs, there are many “off-market” properties available to pastors, some completely free of charge! The difficulty is that they often take a bit more effort than a simple Google search, so many rarely do it. However, these simple strategies don’t take you much time, and could save you hundreds if not thousands of dollars over the years.

Ask Other Pastors

Profound, huh? However, almost every single pastor has asked the same question, “Where can I find free lodging for retreats or getaways?” Why do all the research yourself when someone may have already done so? Asking fellow pastors or ministry leaders in your area could be a huge resource for free getaway options.

Ask Denomination or Affiliation Leaders

Again, you’re not the only person to ask this question. Those who oversee churches or church leaders are often some of the first to hear or learn about getaway options. See this curated list by Ed Stetzer some years ago. Many locations that have space available reach out to them, assuming that they would be the best positioned to share with other pastors.

Ask People in Your Congregation

Many people have, or know someone who has, a second home or vacation home. It never hurts to ask people in your church who may have connections to options you would never find otherwise. You’ll be shocked by the joy people get from their generosity. 

Reach out to Camps or Retreat Centers

Give a call or email to local camps or retreat centers in your area. This is literally their industry! They are in the business of lodging and getaways! Many Christian camps even have separate facilities specifically for pastors going on a retreat or on sabbatical.

Google Can Still Work

Imagine you have a heart for hospitality and you invest a lot of time and money into a property for the purpose of providing a place of retreat. If you want to get the word out, what will you likely do? Make a website. SEO will still pick up on keywords, so it never hurts to try “Free lodging for pastors” or other variants in your search bar.

Other Creative Options

Beyond that, there are a handful of creative ideas that you could employ. Some have done house swapping with others in different areas. Some have leveraged camping and national parks as a money-saving alternative for lodging. If you’re looking for a vacation, there are websites where people sell their nonrefundable or unwanted vacation/travel packages for fractions of the original price. The sky is the limit!

If you’ve made it this far, you are likely underwhelmed by the profoundness here. But here’s the thing – people RARELY do this. There are many people who invested a lot of time and money into places to offer them to pastors and their families free of charge, yet sometimes they rarely get used because no one takes the time to ask and find them. Don’t be one of those people!

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Why Don’t Churches Pay Payroll Taxes For Ministers?

by Monday, April 24, 2023
Picture of a field of sheep with blog post title: Why Don’t Churches Pay Payroll Taxes For Ministers?

Tax season has just come to an end and most of us are either eagerly awaiting a return or bemoaning how much we had to pay. The rest of you filed an extension and are still trying to get your papers together or get your tax preparer to answer your calls. Isn’t tax season fun?

If you haven’t opted out of Social Security, then you would have filed Schedule SE to calculate your Social Security and Medicare taxes, also called payroll taxes. Front and center, in the biggest, boldest print is the title for Schedule SE: Self-Employment Tax. But if you’re a church employee and not self-employed, why are you filling out a form for self-employment taxes? Allow me to enlighten you.

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4 Simple Ways To Make Budgeting Easy And Effective

by Monday, April 10, 2023
Picture of a light bulb in a thought bubble with blog post title:4 Simple Ways To Make Budgeting Easy And Effective

A lot of people treat budgets like New Year’s resolutions. They are lofty and unrealistic goals with only an 8% chance of becoming reality. But that’s not how it’s supposed to be.

Budgets are supposed to be personalized money management tools that help you take control of your finances. If you don’t have a greater sense of control and empowerment, then your budget isn’t working.

If you don’t have the kind of budget I’m talking about, then you really need one. Follow this link to learn how to make a budget that serves as a GPS and not a jail cell. Once you’ve got your GPS budget going, here are a few simple ways to make budgeting easy and effective:



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How The Housing Allowance Can Hurt Pastors With Families

by Monday, March 20, 2023
Picture of a family with children with blog post title: How The Housing Allowance Can Hurt Pastors With Families

The clergy housing allowance is touted as the greatest tax benefit available to pastors. And it really is a great benefit. I learned back in 2019, though, that it can have a dark side. Not a Darth Vader using the Force to crush you kind of a dark side, more like a “If I hadn’t claimed so much, I’d be $1,000 richer” kind of dark side. The problem is how it can affect the Additional Child Tax Credit, which is a major benefit for pastors with children.


How The Clergy Housing Allowance Affects The Child Tax Credit

One of the provisions of the tax reform that passed 5 or so years ago, one of the few points that everyone liked, was the doubling of the Child Tax Credit (CTC). Kids used to be worth $1,000 each and now they are worth $2,000. That still doesn’t feel like enough when your child is laying on the floor screaming, but hey, it’s something, so let’s be thankful for it.

The CTC is credited against your federal income taxes. On your Form 1040, you add up all your income, subtract the standard or itemized deduction, and end up with your taxable income. That taxable income determines your federal income tax. The CTC is then subtracted from the tax so that you won’t have to pay as much.   

Income

-Standard/Itemized Deduction

=Taxable Income

Income Tax

-Child Tax Credit (and other credits)

=Taxes Due

The housing allowance lowers your taxable income, which lowers your federal income tax. In fact, I know a lot of pastors are able to completely erase their taxable income between the housing allowance and deductions. No income means no tax due, which means you don’t get to take advantage of the CTC.

But why does that matter if you’ve eliminated your tax bill anyway?

How Income Affects The Additional Child Tax Credit

It doesn’t, really. What matters is the Additional Child Tax Credit (ACTC). The ACTC is the refundable portion of the CTC. That means that it isn’t simply used to cancel out part of your tax bill. The government will actually give you the money, even if you didn’t owe any income taxes in the first place.

On your 2022 tax return, up to 75% of the CTC qualifies for the refundable ACTC. That means the government is willing to pay you up to $1,500 per child. If you have a big family, that is a big deal.

Where the housing allowance comes into play is that your ACTC is limited by your income. It is limited to 15% of your income over $2,500. So, if you use the housing allowance to reduce your income, you also reduce your eligibility for this refund.

Taxable Income

-$2,500

x15%

=Limit on Additional Child Tax Credit

How It Plays Out In Real Life

(This is for illustrative purposes only and does not include things that are immaterial to the subject at hand, such as self-employment taxes and the deductible part of them.)

Let’s say you’re married, you have three children, and you earn $50,000 a year. You take half of that as taxable income and half as a tax-exempt housing allowance. Your tax return would show $25,0000 as income that would be completely eliminated by subtracting the $25,900 standard deduction. So, after the deduction you show no income and, therefore, no income taxes are due.

If you don’t owe income taxes then you can’t take the CTC. However, the ACTC is still available to you. The maximum that you could be eligible for is $4,500 (3 kids x $1,500). But there is still that income limitation.

To calculate your ACTC, you first take your earned income, which was $25,000 in this example. Then subtract $2,500 and you end up with $22,500. You then calculate 15% of that amount, which is $3,375. That is your ACTC. In this example, your housing allowance cost you $1,125 in ACTC ($4,500-$3,375).

$25,000

-$2,500

x0.15

=$3,375 maximum ACTC allowed

What would happen if you had only taken $15,000 as a housing allowance instead of $25,000? On Form 1040 you would have ended up with $9,100 of taxable income ($35,000 income – $25,900 standard deduction). The income tax on that is $908. However, the CTC would have canceled that out and you would not have ended up owing any more than before.

How does the lower housing allowance affect the ACTC?

$35,000

-$2,500

x0.15

=$4,875 new maximum ACTC allowed

Your new limit is $4,875, which is more than the $4,500 you are eligible for. So, lowering your housing allowance increases your ACTC to $4,500. That’s $1,125 more that you get back without increasing your tax bill at all. What could you do with an extra $1,125?

What Should A Pastor Do?

Remember, the clergy housing allowance is a benefit available to you. There is no requirement that you take it. The IRS isn’t going to come after you, mortgage statement in hand. You don’t have to claim a housing allowance and you shouldn’t if it is costing you money.

If you have kids and a lower income, you really need to look into this. Check your 2022 tax return to see if you got the full Additional Child Tax Credit. If not, play around with the numbers. Calculate your tax bill with different housing allowance amounts to see how the final results are affected. Now is a great time to do it since you can use your 2022 return numbers to determine how much of a housing allowance you should be taking in 2023.

Remember, the Bible says that children are a blessing. So let’s make sure you get all of the financial blessings you’re entitled to!

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Your Top 10 Clergy Housing Allowance Questions Answered

by Monday, March 6, 2023
Row of houses with blog title: how to get the most value out of your housing allowance

The clergy housing allowance is by far the most common topic that I receive questions about. Here are 10 or the most common questions answered to help you get the most value out of your housing allowance:

How does a housing allowance work?

  1. You, the pastor, calculate what your housing costs will be for the year and submit it to your church.
  2. Your church approves the housing allowance and does not include it as taxable income in box 1 of your W-2.
  3. You track your housing expenses throughout the year. Add any excess housing allowance to your taxable income on your tax return when you file.
  4. If you have not opted out of Social Security you need to include the housing allowance amount as income when calculating your self-employment taxes.

What expenses can be included in the housing allowance?

A housing allowance can cover:

  • Down payment on a home purchase
  • Mortgage principal and interest payments
  • Property taxes
  • Homeowner’s insurance
  • Structural maintenance and repair
  • Landscaping, gardening and pest control
  • Furnishings (purchase, repair, replacement)
  • Utilities (gas, electricity, water, internet) and trash collection
  • Land telephone line
  • Cable TV expenses
  • Homeowner’s association dues/condo fees

Is the housing allowance the church’s or the pastor’s responsibility?

It is the pastor’s responsibility. The church’s only role is designating and paying the allowance. The pastor must calculate the allowance, document expenses and include the proper housing allowance amounts when filing his or her tax return.

Is a housing allowance considered income for tax purposes?

Not for income tax, but for self-employment taxes. If you have opted out of Social Security you do not pay self-employment taxes so your allowance does not affect your taxes. Housing allowances are exempt from most state income taxes, but you should double check with your particular state.

How much is exempt from federal income taxes?

The IRS specifies that only the lesser of the following can be excluded from your gross income:

  • the amount actually used to provide or rent a home;
  • the fair market rental value of the home (including furnishings, utilities, garage, etc.);
  • the amount officially designated (in advance of payment) as a housing allowance; or
  • an amount which represents reasonable pay for your services.

When should I request my housing allowance?

You should get your housing allowance approved prior to the beginning of the year or at the beginning of the year so that you don’t miss out on any of the benefits. An allowance can be approved at any time during the year, but only expenses incurred after the approval will be eligible for the housing allowance.

Is it better to overestimate or underestimate my housing allowance?

Overestimate. If you underestimate your expenses you cannot go back and increase your housing allowance. However, if you overestimate, you can make a correction by including the excess amount as taxable income when you file your taxes.

Can I change my housing allowance from year to year?

Most definitely. If your housing expenses change from year to year so should the allowance you request. When you plan on making a large purchase, such as a bed, deck or house, your requested allowance should include that amount. If you end up not making the purchase, you will simply adjust down the allowance when you file your taxes. If you don’t include the large expense, you will unnecessarily pay taxes on that amount.

Can I still take the mortgage interest deduction?

Yes. Receiving a housing allowance does not preclude you from deducting your home mortgage interest and real estate taxes if you itemize deductions.

Do I need to document my housing expenses?

Yes! Keep all receipts, bills, etc. that apply to your housing allowance. The IRS loves paper trails and if you get audited without one it could get ugly.

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