The Church Finance & Minister Tax Podcast- Church finances, Minister Taxes, Minister payroll, IRS Compliance

Ep 52 ~ Tips for Getting Your Tax Documents for a Smoother Tax Season

The IRS has announced the tax opening date for 2024.
In today's episode I share a list of documents you need to start gathering together to help make the tax prep process smoother for you and your tax preparer.
This week's Courageous Obedience Moment is to look for God and how His character is revealed in Scripture instead of reading the Bible with the intent of looking for what the Word has to say to you. Look for God!
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 
Join the BEST FaceBook group for church finances at https://www.facebook.com/groups/churchbookkeepingandclergytax
 
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Need an extra helping hand with an immediate situation? Schedule a Consultation:
https://churchfinances.org/consult     

Ep 51 ~ Record Retention Requirements for the Church

IRS blurb for your annual contribution statements
" Pursuant to Internal Revenue Code requirements for substantiation of charitable deductions, no goods or services were provided in return for the Tax Deductible contributions"
For QuickBooks Desktop:
" Unless otherwise noted, the only good or services provided are intangible religious benefits"
 
Records that should be retained for 5 years:
Offering Envelopes (unless you put a disclaimer advising members to request any necessary changes within a specified time period on the annual statement)
Annual contribution statements
Written acknowledgment of charitable contributions
Written verification of participation in short-term mission projects approved by the church
Substantiation of business related expenses that are a part of an Accountable Reimbursement Plan
Minister job descriptions and Housing designations
Copies of IRS forms (ex. 941, W-2's, 990-T, W-4's, 1099's)
Records to keep until Jesus comes back :-)
Any and all legal documents for the church (incl. Articles of Incorporation, Constitution & Bylaws, Tax exemption records)
Church Policies, Job descriptions, Compensation Package data, Accountable Reimbursement Plans & Safety Net Housing Allowance docs if you have one
Correspondence from the taxing authorities incl. IRS, State and local authorities (incl. Form 1023 application, SS-4 EIN number, Form 8274)
Courageous Obedience Moment:
From Calm Your Anxiety by Robert J. Morgan
"Equipping yourself with Scriptures will help your mind be trained to move from panic to peace, from worry to worship, and from anxiety to confident trust. Identify three scriptures that will help you make these movements. Recite them each day until you've memorized them."
Be blessed my friend.
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
You can join the BEST FaceBook group for churches at https://www.facebook.com/groups/churchbookkeepingandclergytax
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Schedule a Consultation:
https://churchfinances.org/consult      

Ep 50 ~ Review What Worked this Year and What Didn’t

With the end of year upon us, let's take the time to review what worked well this year, and what didn't. Then take steps to make next year even better!
Here are some links to resources that can help increase your knowledge in church finances.
www.thechurchnetwork.com
www.churchlawandtax.com
www.bookkeepersinnercircle.com
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody
End of year special -- ONLY $10/month! Special pricing ends 12.31.23
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Schedule a Consultation:
https://churchfinances.org/consult       

Ep 49 ~ Communication: 3 Areas of Communication Vital To Your Success

Communication. You hear it mentioned when you're in a relationship. But communication is also vital to your business success. Today I talk about 3 areas of communication that you need to pay attention to in order to experience the success you desire in your service to the local church.
I open with a story about a remarkable lady who works in her church office and has some unique challenges. 
I hope this episode blesses you.
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody

Ep ~ 48 QuickBooks Changes Coming Soon

Intuit is always changing things, and not always for the best. Many small and medium size churches still use QB Desktop and it has been my software of choice for the last 27 years. Intuit made the announcement this week that they will no longer make the Desktop version available to new customers effective July 31, 2024. As QB Pro Advisors and bookkeeping professionals, we knew it was coming, we just didn't know when. Current subscribers CAN still keep your desktop subscription, you just have to pay an annual fee. The days of purchasing the software and it being a "one and done" are gone.
 
xo,
Michelle
michelle@churchfinances.org
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
If you’re a looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Schedule a Consultation:
https://churchfinances.org/consult       
 

Ep 47 ~ Tax Issues for Ministers

Dual tax status = EE for income tax purposes, but considered SE for FICA tax purposes
Minister should make ETP throughout the year to help pay for the SE taxes that will be due on their income to avoid underpayment penalties if they owe over $1,000 tax liability
EE vs IC     IRS link   Publication 1779 download
HA is exempt from Federal Income Tax, but IS subject to SECA and has limitations on the amount that can be designated
Business expenses must be allocated between taxable and nontaxable income (calculated on the 3 Clergy worksheets on the ministers tax return)
Special rules apply to retired ministers who receive any of their retirement benefits as HA 
Form 4361 explanation (filed within first 2 years of earning minister earnings of $400 or more) - NON revocable
Due to TCJA until 2025 the Misc. Itemized deduction subject to 2% AGI limitation is not allowed. However, if the minister has unreimbursed job expenses, he can subtract them from SE earnings on Worksheet 3 of the Clergy Worksheets in the minister's 1040 tax return
Gifts given to active ministers may actually be compensation for services rendered and therefore included as taxable income.
I hope this information is helpful to you.
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 
If you’re a business owner looking for help serving your clients with excellence, check out my Mastermind program The Bookkeepers Next Level @ www.bookkeepersNextLevel.com
 
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Schedule a Consultation:
https://churchfinances.org/consult       
 
 

Ep 46 ~ Thanksgiving: More than Just a Holiday

Regardless of what's going on in your life or your business, there is ALWAYS something to be thankful for. 
In today's episode, I go over some items that we should all be thankful for this year.
Thanks for taking a listen and I hope you have a very Happy Thanksgiving!
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody
Schedule a Consultation:
https://churchfinances.org/consult       
Join the FB Community:
www.facebook.com/groups/churchbookkeepingandclergytax     

Ep 45 ~ What to expect when filing your W-2’s and 1099’s this year

Check your W-4 information - make sure have all required information on all current and past 2023 EE’s and update if neededThis is also a good time to update your EE files with any new information or missing info incl. I-9’s
Beginning January 2024, the IRS has issued final regulations for filing paper return and you now have to file electronically if you have only 10 or more W-2 OR 1099’s to file.W-2’s SSA.gov/BSO = you will have to create a new login through either ID.Me or  Login.gov
I use track1099 to file my 1099 forms  Can either email or print and mail to contractors
Make a list of all your contractors and make sure you have the info needed 
If you're ready to get serious about learning church finances, you can join the Bookkeepers Inner Circle which is my paid private coaching community for all things church finances where you will have access to me each month for a LIVE Q & A session along with monthly training videos. To check it out go to, www.bookkeepersinnercircle.com and join today! 
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody
Schedule a Consultation:
https://churchfinances.org/consult       
Join the FB Community:
www.facebook.com/groups/churchbookkeepingandclergytax  

Ep 44 ~ Let’s Kickoff our 4th Quarter Checklist

Today we will be talking about things we want to accomplish in this last quarter. We will talk about 4 tasks I want you to do:
1. Tell your members about donation deadlines
2. Understand the $250 rule
3. Locate your 501c3 letter
4. Review your insurance policy
I hope this gets you off to a good start on checking off those year-end tasks.
As always, thanks for sharing your time with me. 
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody
Schedule a Consultation:
https://churchfinances.org/consult       
Join the FB Community:
www.facebook.com/groups/churchbookkeepingandclergytax  

Ep 43~ Love Offerings and Why They are Taxable to Staff Members

In todays episode I walk you through three reasons why generally all love offerings to staff members are considered taxable income by the IRS. 
It can be frustrating, but the IRS is clear that "income from whatever source derived" is taxable. 
Take a listen to see what else the IRS has to say on the topic.
As always, thanks for taking time to listen. I truly appreciate it!
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps    biz owners
https://churchfinances.ck.page/guide   everybody
Schedule a Consultation:
https://churchfinances.org/consult       
Join the FB Community:
www.facebook.com/groups/churchbookkeepingandclergytax