Though it took five months, the Seventh Circuit Court of Appeals has finally ruled in favor of the clergy cash rental housing allowance (the parsonage allowance was not at issue), declaring it to be constitutional. Here at Pastor’s Wallet, we have been following this story for over a year. Background The drama actually began back in 2013 when the leaders of the Freedom from Religion Foundation (FFRF) sued the US government because they believed the ministerial housing allowance to be a violation of the separation of church and state. The judge agreed with them, but it didn’t last long. An appeals court found that the FFRF lacked standing in the case. Basically, they had no right to sue because they had not been harmed by the clergy housing allowance. Determined as ever, the FFRF leaders tried to claim a ministerial housing allowance. As expected, they were denied. However, that denial gave them standing ...

As you look forward to starting seminary in the fall, perhaps the biggest thing on your mind is how in the world am I going to pay for it? If you’re like 69% of college students, you’re probably planning on taking out student loans. Even if you used loans to pay for your undergraduate degree, things are different once you get your Bachelor’s. Your options have changed. So that you can make an educated decision, here are the loan options available to help you pay for seminary: Direct Unsubsidized Loans The federal government offers direct unsubsidized loans to both graduate and undergraduate students. These are not need-based, so all you need is to be enrolled at least part-time in a participating school to qualify. To apply for these loans, you have to submit the Free Application For Federal Student Aid (FAFSA). The seminary will use the information from the FAFSA to determine how ...

If you’re a pastor, hopefully you’ve been told that you are subject to dual status taxation. If not, I’m really glad you’ve found this post! What Is Dual Status Taxation? Dual status taxation simply means that you are taxed two different ways in the same tax year. My husband was subject to dual status taxation back in 2011 when he became a US citizen. For the first part of the year, he was taxed as a resident alien and the second part of the year he was taxed as a citizen. Dual status just means that he had two different statuses during the year. My husband was only subject to dual status taxation for one year, but pastors aren’t so lucky. You are subject to permanent dual status taxation. That means that every single year you are going to be taxed in two different ways. It isn’t something you can avoid, it’s simply ...

In honor of International Women’s Day on March 8, here is a piece for single women in ministry. I know you are the minority, but you matter and you are some of my best friends! Though geared towards women in ministry and their unique challenges, everyone can benefit from what guest writer Michal Slate has to say. A Certified Financial Planner™ with a master’s degree in business leadership from Colorado Christian University, she has more than 13 years experience working with individuals on a personal level to help them discover the best course of action for their finances. Michal is passionate about both Jesus and helping Christian women master their finances. You can learn more about her and what she does here. What are your financial goals? Are they funding the day-to-day work you do in the inner city or poverty-stricken countries? Or is your financial goal to run a mega ministry that ...

Airbnb is a great way to earn extra income. However, renting out part of your home affects your ability to take the ministerial housing allowance. View post

This is a guest post by Stephanie Anderson of Andersonswife.com. She and her husband, Trevin, are pastors at Mannahouse in Portland, OR.  Stephanie Anderson of andersonswife.com. View post

While pastors can no longer deduct unreimbursed business expenses on Schedule A, they can subtract them from their taxable income on Schedule SE. View post

The Tax Cuts & Jobs Act introduced a 20% deduction for qualified small businesses. As a pastor, even if you don’t have a side business, you may still be able to take advantage of it. View post

This is a guest post by Ben Wacek, Certified Financial Planner® and founder of Guide Financial Planning, where he offers clients Bible-based financial guidance both in-person in Minnesota and virtually throughout the country. View post

In just a few short weeks, tax season begins! Now, this isn’t like the Christmas season where everyone is giddy, singing, and trying to start it earlier and earlier each year. For most people, tax season is more akin to going to the dentist than to Disneyland.   This year, though, there is more excitement than normal. Why? Because we have new tax forms, thanks to the new law that was passed a year ago.   What, you don’t think that’s exciting? It’s been decades since the Form 1040 has gotten a makeover. She was still wearing bell bottoms, and I mean the ones from the ‘70s, not the ‘90s!   Ok, so maybe new tax forms aren’t your idea of fun, but they are important. You are going to be signing these forms sometime in the next couple of months, so you should probably take a look at them.   Form 1040 Changes In June of ...