https://youtu.be/z1f72R1aOCE Pastors are dual-status taxpayers who pay Social Security and Medicare taxes as if self-employed. But do you really have to pay the full 15.3% or is there a waiver available for clergy?

If you are a church employee, you may have to file Schedule SE (even though you're not self-employed) and pay double payroll taxes. This is why. View post

https://youtu.be/rxAM8VRzFlI Does the way you pay your taxes affect your ability to claim a housing allowance? What determines if you can claim a housing allowance or have to pay self-employment taxes? Do you have to pay taxes on the housing allowance?

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 half of them count the housing allowance in their calculations. What about Social Security? Does The Housing Allowance Count As Compensation For Social Security Purposes? The housing allowance affects different aspects of Social Security retirement benefits in different ways. Let’s take a look at our two main concerns regarding compensation and Social Security; benefit accumulation and taxability of benefits. Benefit Accumulation As you’ve read in other posts on this blog, Social Security benefits are ...

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.

Back in November, I gave you some homework. Did you do it? I hope so! Being on the same page as your spouse about your vision for the future is very important. I have some more homework for you again this week. It’s a lot like last time’s—getting on the same page as your spouse. Except this time the topic of conversation is in the nearer future. How Much Would You Like To Help Your Children Financially? After the retirement conversation, the next one is kids. Even if you don’t have kids, you may want to have this same conversation relating to other family members in general. How much financial support would you like to provide? Again, there is a wide spectrum of possible answers to this one. I’ve seen everything from “You start paying rent on your 18th birthday” to “I’ll keep paying your car insurance well into your 30’s.” The major ...

https://youtu.be/HS-v_wlFMVY Can money in a 403(b) be claimed as a housing allowance in retirement for someone living in a life care facility where the cost includes meals and medical care? How should that situation be handled?

Today’s post is written by Chris Wells, a CERTIFIED FINANCIAL PLANNER® professional and Certified Kingdom Advisor® who works with pastors and Christian families to help them make healthy financial decisions and become wise financial stewards. His firm, Flourish Financial Planning, is located in Texas and serves clients across the US utilizing a fee-only model with no asset minimums. View post

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?

In 2017, I started the tradition of ending the year with a report of the top 10 most viewed blog posts on Pastor’s Wallet. I thought it might be helpful for new subscribers and others who may have missed something that would have interested them. While it has served that purpose, it’s also been interesting to see the trends of what pastors are interested in over time. Certain topics rise in popularity for a season, such as 2018’s articles on the tax law changes, while others are always in demand regardless of what is going on in the world, as you’ll see below.  Drum roll, please. Ladies and gentlemen, here we have it: the top ten personal finance blog posts for pastors of 2021: 1. How Much Housing Allowance Can A Pastor Claim? This one rose to the top this year because it is something that applies to just about every single pastor. The ...