1. With your housing expenses, you are allowed to take that money tax free. Make sure that you, or whoever is doing your taxes knows how much you were paid that was applied to housing in order to make sure that you indicate that you did not pay tax on that money. Remember that this does not include income tax, so you must pay tax for social security.
2. Turbo tax is a great resource. Many people to prepare taxes are not familiar with ministers taxes. Turbo tax has all of the up-to-date tax information for ministers and it will save you money in the long run.
3. Pastor’s are considered self employed. This being so, you will have to pay your social security tax as a lump typically, so make sure you are prepared and ready to pay this sum around tax time. Don’t wait to save, you are a self employed person, you need to treat your pay like it.
4. Make sure you pay your taxes on gifts. Typically if one receives a gift, it is when making a visit, performing a funeral or a wedding. These are part of your “job” so this would also be income, so since it is income, you must pay taxes on it. Don’t just think it is a gift so you don’t need to pay taxes on it, you are not better than others who get paid from a business, your pay just looks different.
5. The housing allowance is tax deductable, meaning you don’t have to pay taxes on whatever you designate for housing. At the same time you do that, whatever interest you pay on a mortgage can also be deducted on your taxes, also known as the “double-dipping” benefit.
6. Always pay your taxes. This might sound stupid but I don’t write this to say that you should just pay your taxes, you know that, but I say it as a reminder to be honest. As a Christian you are called to be honest, and as a minister you are called to a higher calling. So because of this, you need to be very honest and make sure you are following the tax
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment