When a parsonage is not provided, most churches provide a cash housing allowance in lieu of the parsonage. Did you know that you can still designate a Housing Exclusion?
In this post, I go over the difference between the Exclusion and the Allowance and how they can work together.
This probably isn’t the most timely of posts, but it fits with the theme for the month in looking into housing and taxes for clergy.
For nearly twenty years, I didn’t have a good answer for how to estimate the value of the parsonage for tax purposes. I finally have a good answer.
If there’s any question I get more often than any other (at least relating to the Housing Exclusion), it’s this: “Does the IRS have a list of housing expenses I can write off?”
The answer is No. In all my reading, the IRS doesn’t even give an example. So, that has led some clergy tax experts to put together their own list which I share with you here.
When setting a Housing Exclusion, there are three things to pay attention to if you want to avoid overpaying taxes: 1)the amount, 2)the timing, and 3) the approval.
This is especially important for any pastors making midyear changes.
I love this time of year! I like the cold weather and the smell of tax forms. Before the end of the month, I should have my taxes filed and my withholdings adjusted.
This is the time of year to start thinking about how much you are putting aside for taxes. You can set your withholdings by properly completing Form W-4, but the revised Form is tricky…especially for clergy.
If you’re normal, you’re afraid of the IRS. But fear of the IRS is not a good reason to ignore the math and turning down a taxable benefit. In this post, I share a quick way for pastors to gauge the taxes of a benefit.
With the monthly Advance Child Tax Credit Payments, how do you opt out if you already adjusted your withholdings? Well…I couldn’t figure that out so you get to hear the story of my struggle.