Browsing Category Taxes

Here at Pastor’s Wallet, we talk a lot about the clergy housing allowance because it’s such a unique benefit for pastors. In fact, I even wrote a book on the topic, as you can see from the above graphic. Today, we are going to talk about how the housing allowance affects Social Security benefits.  You see, your housing allowance is considered compensation for your ministerial services. However, there are a lot of different programs that use compensation numbers and only about ...

https://youtu.be/9VV0m-JA9HE There is only one time when a gift to a pastor can be tax-free, and that is at retirement IF certain IRS criteria are met.

https://youtu.be/RVraTLSirok If your church has a budget for tax-free ministry-related travel expenses, does that include family members' expenses if they travel to a conference with you?

https://youtu.be/5jmofQQHx_s Can churches pay Social Security taxes for their pastor? What if the employment agreement says they will?

https://youtu.be/hfVcZtotFAk Do cell phones qualify for the clergy housing allowance? If not, is there any way for a church to cover the cost for their pastor?

https://youtu.be/RSEY8HCVdr0 In this video, Amy answers the following questions:- What is the QBI deduction?- Can a pastor claim the qualified business income deduction? - If so, is the housing allowance part of the calculation?

You didn’t opt out of Social Security because it doesn’t violate your conscience. But that doesn’t mean you like paying the tax. There are probably a lot of things you would rather do with that money. Do you have any other options? Yes, you do. There is a legal way for you to avoid paying Social Security and Medicare taxes without opting out. And not only does it save you on taxes, but it’s really good for your future self as ...

https://www.youtube.com/watch?v=_l1GfwrTF9U In today's video, Amy answers a question from a Pastor's Wallet reader whose church wants to help him purchase a car and he's wondering if that is considered taxable income.

This is an excerpt from my book, The Pastor’s Wallet Complete Guide to the Clergy Housing Allowance:  The church is not required to report the housing allowance to the IRS. Unless a church includes it in an informational section on Form W-2, the IRS and the Social Security Administration (SSA) are only made aware of the housing allowance when a minister files Schedule SE to pay Social Security taxes under SECA.  Form W-2 You should review your Form W-2 that you receive every ...

If you have kids, there’s a good chance that you received some money from the IRS in the last couple of days. It is a part of the American Rescue Plan legislation that was passed in March, an advanced payment of your 2021 child tax credit. Along with money in people’s pockets, it has caused an incredible amount of confusion.  I honestly don’t think I’ve ever seen so much confusion surrounding something that so broadly affects Americans and has had good ...