Income Tax Help

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Clergy Tax and Social Security Tax – Q&A From Pastors and Church Treasurers

Filed under Uncategorized by kade.carillo.incometaxhelp on 05-12-2009

Question: Is a 1099 or W-2 is for a non-minister employees appropriate?

Answer: If your pastor is a non-employee you do not (back from his payroll and income taxes to the IRS), then if he had just 1099MISC. A W-2 is only for employees.

Question: I have a full-time pastor for about 2 years. Recently I’ve realized that I did not pay SS o da rMedicare go into the ministry full time. I keep our financial secretary, had $ 45 from my weekly paychecks for Federal Tax, but I did not know that I have for the SS and Medicare as a self employer responsible! Help! I’m really at a loss what they have to do, because I want that for my retirement. I am still working 10 years and to pay SS and Medicare go into ministry full time. Any direction in which I have to go?

Answer: First of all, if you will your application for your ministry income during the last 3 years, you probably paid a self-employment tax. This is your Social Security and Medicare is.

I do not know what can not pay you a week or relatives, I say if $ 45 is sufficient or not. You will pay about 15% of earnings for your self-employment taxes (SS and Medicare) and your income will depend on your enrollment status and total income.

Question: I can not seem to find any answers to my circumstance. I am a pastor, a full-time job on the side to be my home now, while the church has started. I received a housing allowance and I also approve of SE tax on Form 4361 on a fee was. The IRS told me everything I need to do is write “free 4361″ in line 58 of 1040th I would like to continue the online files but am not sure whether I am for a reason that is not able to write that on line in 58th Can you tell me if this is the case or not? In addition, these housing allowances have no effect on my EIC is not true?

Answer: If you file online … It is a place that asks you whether you are exempt from SE tax. I have submitted is not online except for a minister who is. But in my tax prep software … It is a place that calls you that … it is should be the same online.

Your housing will add to your EIC. See page 12 in the IRS Publication 596 Earned Income Credit (EIC)

Question: Can I opt in Social Security now? I will be in the country for 6 years and have only a citizen.

Upon my arrival in the United States to a church pastor of the church board told me to phase out social security, I did what I know?

Answer: Many years ago, Congress made a provision in the Tax Reform Act of 1986 for a brief “window of opportunity” is open to ministers to decide, again in the social security without paying the taxes back. The “window of opportunity” on 15 April 1988 closed.

The Work Incentives Improvement Act of 1999 is again a “window of opportunity” to decide to return to the social security, without paying the taxes back. This two-year window closed, 15 April 2002 .-

The Board of Pensions of the office is not aware of any formal determination of today, we allow ministers to revoke the previous exemptions and “opt back in” Social Security. That does not mean that they do not … You need only to observe and be aware of if and when they do.

You can analyze a professional touch to your unique tax situation and determine whether and what measures are available for you to again opt

You can invest even a safe IRA, your money to social security, which is about 15% of gross salary, so if you could put that much into a retirement account would be a little help.

Editor Tips

The current law on the sale of a principal residence has, in force since 1997. It provides the first $ 250,000 of the gain is not taxed on the sale. A married couple is not taxed on the first $ 500,000 of profit. This can be time and time again as long as the residence’s sale to take the rules.

Represents a non refundable tax credit of up to $ 2,000 for the bachelor, diploma and other costs incurred in connection with tuition fees during the calendar year. The first value of $ 10,000 tuition costs and fees (excluding room and board, however) are for a 20% credit into consideration.

You are not alone and your situation is quite common. That is why page 1, line 19 “Other deductions.” Here you will find on any other company prints on a separate schedule list. The total of this schedule is then transferred to page 1, line 19

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