IRA distributions are treated differently for tax purposes (for the donor) and should not be lumped together with regular contributions. This document provides more information about how to ... Continue Reading→
What should our church include in the year-end statements we send to our donors?
Churches sending acknowledgement letters to their donors should remember the following substantiation requirements held by the IRS. Please reference IRS Publication 1771 for more information on record ... Continue Reading→
Our members have given tithes and offerings in January that are dated for December of the previous year. Should these contributions be included in last year’s tax statement?
No, a check received in January should be considered a current year contribution. According to the IRS, contributions should be deducted in the year delivered. If a check is hand delivered to the ... Continue Reading→
As a church employee, can I have my tithes withheld as pre-tax deduction and not have to pay Federal tax or Social Security tax on the amount set aside for tithes?
No. This is not a pre-tax deduction. The church can do withholding for your contributions, but it will be considered taxable income and you may be allowed to take the contributions on Schedule A ... Continue Reading→
Can a minister assign earned income to a charity and avoid paying taxes on it?
No. It would still be taxable to the minister and would be added to Box 1 of the W-2. The power to dispose of income is the equivalent of ownership. ... Continue Reading→