There have been a few tax changes in recent years that could benefit ministry employers and employees. While we do not consider ourselves to be tax experts, we wanted to make sure you are aware of these opportunities for savings.
Social Security: It Pays to Delay
Tax Tips for Gig Economy Entrepreneurs and Workers
It is currently estimated that 45% of working Americans report having a side gig or “side hustle.” Taxpayers must report their gig economy earnings on a tax return – whether they earned that money through a part-time, temporary or side gig. The IRS Gig Economy Tax Center provides information and resources to help this group of entrepreneurs and workers understand and meet their federal tax obligations.
Health care records that can help protect your finances
documents and the conversations that go with them can be hard and uncomfortable. But completing them now and having those talks while you’re able can help ease burdens if you become ill or after you’re gone. Servant Solutions is able to help through a free service provided by our recordkeeping partner, Principal Financial Group. Principal has teamed with ARAG* and now provides a package of estate planning documents available to you at no additional cost.
Compensation Planning - Even When The Budget Is Tight
Not only is Servant Solutions here to serve those individuals who serve, but also to serve the churches and organizations who employ those who serve. Our hope is to encourage each employer, no matter the size, that it is possible to honor their pastors and leaders, even if the budget is tight. We know too well the challenge of recruiting, retaining and rewarding people who will serve our congregations with excellence. We also want pastors to feel confident that their congregations value and care for them.
Housing Allowance in Retirement
The Minister’s Housing Allowance is one of the key benefits provided by the tax code for credentialed ministers. Based on one simple line of tax code originally set forth in 1921, the allowance provides a powerful way for credentialed clergy to significantly save on their annual tax liability. This benefit extends into retirement if the distributions come from a church-sponsored 403b(9) plan.