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Your 4% Withdrawal Strategy May Not Be Enough
YOUR 4% WITHDRAWAL STRATEGY MAY NOT BE ENOUGH Get the Tax Guidance You Need to Help Live the Retirement You Desire There’s a lot of concern among industry experts about whether the popular 4% withdrawal rule can provide enough income...
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We Stand With You
In recent days, we have watched as outraged and frustrated protestors spilled out into the streets of American cities. Across our communities, unhealed wounds have been brought vividly to our attention once again. Our firm is...
Read MoreDetails on the Tax Deadline Extension
Details on the Tax Deadline ExtensionThe I.R.S. is giving you three additional months to file and pay. The Internal Revenue Service knows that many taxpayers have had a stressful spring. So, it has reset the federal tax deadline. You...
Read MoreShould Ministers Prepare Their Own Tax Returns
Ministers can prepare their own tax returns. While ministers' taxes present several unique rules, these rules are not complex. Unfortunately, many people confuse uniqueness with complexity. With a little effort, most ministers should...
Read MoreSeminars, Workshops, and Webinars
Understanding the tax and financial aspects of your ministry can save you money and reduce your risk of Internal Revenue Services (IRS) audits. That is why Clergy Tax Financial offers year-round seminars, workshops, and webinars around...
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Exemption from Social Security (self-employment) taxes
If ministers meet several requirements, they may exempt themselves from self-employment taxes concerning their ministerial earnings. Among other things, the exemption application (Form 4361) must be submitted to the IRS within a....
Read MoreHow Should AME Church Pastors Pay Their Taxes
As an AME Church pastor, your wages are exempt from federal income tax withholding. This means your local AME Church does not have to withhold income taxes from your paycheck. And since AME Church pastors are self-employed for Social...
Read MoreRecordkeeping
Well-organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination or to prepare a response if you receive an IRS notice. Records such as receipts, canceled checks and...
Read MoreEarnings for Clergy
A licensed, commissioned, or ordained minister is generally the common law employee of the church, denomination, sect, or organization that employs him or her to provide ministerial services. However, there are some exceptions, such as...
Read MoreWeber v. Commissioner, 103 T.C. 378, 386 (1994)
In North Carolina, IRS audited several hundred United Methodist minister's tax returns that reported their salary income and professional expenses spent to earn that income on Schedule C. Legal counsel of the United Methodist...
Read MoreWhy the Confusion and Contention with the IRS?
Often a church treasurer or board will ask their minister what tax status they prefer as if it is an optional decision. Our theological colleges and seminaries do a very poor job teaching ministerial students about tax law and how it...
Read MoreWho is a minister for federal tax purposes?
The criteria the Internal Revenue Service (IRS) uses to determine who is a minister are not necessarily the same as those used by churches and denominations. Whether or not one qualifies as a minister for tax purposes is a very...
Read MoreAre ministers employees or self-employed for federal tax purposes?
Ministers have a dual tax status. For federal income taxes they ordinarily are employees, but for Social Security they are self-employed with regard to services performed in the exercise of ministry. These two rules are summarized...
Read MoreUnderstanding Tax Return Preparer Credentials and Qualifications
Any tax professional with an IRS Preparer Tax Identification Number (PTIN) is authorized to prepare federal tax returns. However, tax professionals have differing levels of skills, education and expertise. An important difference in...
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