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

Hey there, I’m Michelle and I love all things Jesus, business and church finances! I help church finance individuals just like you go from feeling confused and frustrated with what you don’t know about church finances, to being more confident in your role while increasing your proficiency and expertise in the church finance realm. Are you tired of Google searches that result in endless pages of answers to your questions about church finances, housing allowances and clergy taxes? Do you need help with getting the right processes and procedures in place for your church office or business? Are you looking for a group of like-minded believers who understand your desire to do business and serve the local church God’s way? In this podcast, you will find practical AND biblically based business solutions for your church office or bookkeeping business that serves churches . We will give you tried and true bookkeeping tips and lessons that are specific to the church ministry and other foundational practices that you need in place to make sure that the church(es) that you serve are in compliance with current industry standards and IRS tax code. We will also lean into mindset training to help you think like the business professional God created you to be and renewing your mind through the application of truths from the Word of God that will encourage and free you to do business God’s way while learning what you didn’t even know you needed to know! My mission is twofold: #1 to help church bookkeepers/treasurers/finance individuals become more confident in their role and increase their expertise in church finances. #2 to help business owners unapologetically do business God’s way and grow a successful bookkeeping business they feel good about and that helps make the world a better place. If you are ready to walk out the calling the Lord has on your life while serving Him with excellence - then you are definitely in the right place! I tried to achieve success in the secular world but felt unfulfilled and like an outsider because of my beliefs. I finally realized that taking the risk to create a business (or businesses in my case), where I could openly express my faith and beliefs and to put God at the center of everything I did, was more exciting to me than the fear of the ”what if’s”. So, I did it! Not once, but twice! I want to share with you what I’ve learned through my 20 years of business experience in both Christian retail and my bookkeeping business to help you take that step of faith and walk in courageous obedience to God. If you are ready to serve your church with confidence and/or create a business that keeps God at the center of everything you do WHILE helping to make the world a better place all at the same time - this podcast is for you! So grab your Bible, a notebook or laptop, and the dream God gave you, because we’re doing this. It’s time to serve Him with Excellence! Learn: www.churchfinances.org Community: https://www.facebook.com/groups/churchbookkeepingandclergytax

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Episodes

Wednesday Feb 07, 2024

In Episode 42 I talked to you about 3 steps to help you create a sound budget. In today's episode I want to help you take the next step in the budgeting process - ensuring that every program you created a budget line item for is carried out with excellence so that you can actually stay within that budget! Listen in to see how you can continue to honor God in the budget process.
 
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
Need an extra hand with an immediate situation? Schedule a Consultation:
https://churchfinances.org/consult      

Wednesday Jan 31, 2024

Direct from the IRS website:
A minister's housing allowance (sometimes called a parsonage allowance or a rental allowance) is excludable from gross income for income tax purposes but not for self-employment tax purposes.
If you receive as part of your salary (for services as a minister) an amount officially designated (in advance of payment) as a housing allowance, and the amount isn’t more than reasonable pay for your services, you can exclude from gross income the lesser of the following amounts:
the amount officially designated (in advance of payment) as a housing allowance;
the amount actually used to provide or rent a home; or
the fair market rental value of the home (including furnishings, utilities, garage, etc.).
The payments officially designated as a housing allowance must be used in the year received.
Include any amount of the allowance that you can't exclude as wages on line 1a of Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors. Enter “Excess allowance” and the amount on the dotted line next to line 1a.
If your congregation furnishes housing in kind as pay for your services as a minister instead of a housing allowance, you may exclude the fair market rental value of the housing from income, but you must include the fair market rental value of the housing in net earnings from self-employment for self-employment tax purposes.
For more information on a minister’s housing allowance, refer to Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers.
For information on earnings for clergy and reporting of self-employment tax, refer to Tax Topic 417, Earnings for Clergy.
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 hand with an immediate situation? Schedule a Consultation:
https://churchfinances.org/consult      

Wednesday Jan 24, 2024

1099-NEC or 1099-Misc?
Knowing which form to use can be confusing.
In today's episode I go over 
1. who should receive a Form 1099
2. which Form 1099 do you send
3. special circumstances that determine which form to use
4. e-filing requirements
5. filing deadlines
I hope this helps!
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 hand with an immediate situation? Schedule a Consultation:
https://churchfinances.org/consult      

Wednesday Jan 17, 2024

In today's episode we go over how to properly fill out your Ministers W-2, the new mileage rate for 2024 and 1099 filing requirements and deadlines.
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 hand with an immediate situation? Schedule a Consultation:
https://churchfinances.org/consult      

Wednesday Jan 10, 2024

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     

Wednesday Jan 03, 2024

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      

Wednesday Dec 20, 2023

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       

Wednesday Dec 13, 2023

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

Wednesday Dec 06, 2023

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

Wednesday Nov 29, 2023

Wednesday Nov 29, 2023

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       
 
 

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