How Pastors Pay Federal Taxes
I recently received an email from a pastor’s wife of 15 years asking for clarification on how their taxes were paid. She was too embarrassed to ask their tax preparer after all this time, so I was a safe place…
Tag taxes
How The SECURE Act Affects Pastors
Back in 2017, the president timed things just right so that I spent the first day of my family’s Christmas vacation researching the tax reform bill and how it affects pastors. Now, almost two years to the day, he signed…
15 Things To Know About 2018 Clergy Taxes
Growing up, there was one thing that I was always confused about. I would hear people mention April 15 as tax day, but it never made sense to me. You see, in my house, October was tax season. And that’s…
What Taxes Can Churches Withhold For Pastors?
Thanks to the Tax Cuts & Jobs Act, people are paying a whole lot more attention to their tax withholdings this year. Employers had a hard time calculating withholdings with all the changes in the law and the result was…
How To Set Up A Church Accountable Plan To Reimburse Ministry Expenses
Last week we discussed the value of an accountable reimbursement plan for churches now that pastors can no longer deduct their unreimbursed business expenses. Today, I will tell you how to actually set one up. What Makes A Reimbursement Plan…
What Is Dual Status Taxation & Why Does It Matter For Pastors?
All pastors are subject to dual status taxation. What does that mean and how does it look when you file your taxes?
Are Pastors Eligible For The 20% Qualified Business Income Deduction?
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.
The 2018 Form 1040: How It Looks & What It Means For You
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…
The Top 10 Personal Finance Blog Posts For Pastors Of 2018
The most popular Pastor’s Wallet blog posts of 2018, based on number of views.
How A Parsonage Allowance Works
There are two kinds of ministerial housing allowances here in the US. The parsonage allowance is for those living in church-owned housing. The cash housing (or rental) allowance is for those who provide their own housing. Today, I want…
How To Estimate Your Taxes Under The New Tax Bill
The most commonly asked question regarding the new tax reform bill that went into effect at the beginning of the year is, “How will it affect me?” Since everyone’s situation is different, no amount of searching on Google is going…
Your Tax Reform Questions Answered
I’ve been getting a number of questions regarding the tax reform bill that went into effect on January 1, 2018. Here they are with some answers: