Nonprofit and Church Accounting Blog

This accounting blog...

  • informs you when any new web pages appear on my site,
  • shows you the latest question, comment, or tip posted by readers...(please feel free to browse the questions below and answer the ones you feel comfortable answering),
  • let's you know when an error is found in my free financial spreadsheets and how to correct them.

Apr 17, 2018

Can a pastor file schedule c to reduce his earnings for self employment tax purposes?

Should a Pastor file schedule c to reduce his self-employment income by any deductions since he is considered self-employed for social security tax purposes

Continue reading "Can a pastor file schedule c to reduce his earnings for self employment tax purposes?"

Apr 17, 2018

Pastor's Severance Pay, reported on W2 in box 1 or box 14?

I'm wondering if a Pastor's severance pay would get reported on their W2 with wages reported in box 1, or in box 14 alongside housing. Thank you!

Continue reading "Pastor's Severance Pay, reported on W2 in box 1 or box 14?"

Apr 10, 2018

What qualifies as "actual housing expenses"

I had all my pay distributed as Housing Allowance & received a W2 showing no wages. I'm trying to determine the actual housing expenses but wasn't sure

Continue reading "What qualifies as "actual housing expenses""

Apr 08, 2018

Reimbursing meals under TCJA

TCJA says that meals are only 50% deductible. Can I still reimburse my pastor under an accountable reimbursement plan for 100% of his meal expense or

Continue reading "Reimbursing meals under TCJA"

Apr 08, 2018

Salary reduction to make church contributions

I want to make substantial donation to my church. Can I effect that donation by not taking the salary budgeted by the church? Can my W-2 income be only

Continue reading "Salary reduction to make church contributions"

Apr 08, 2018

Reporting Housing Allowance

What form do I use to report housing allowance for a bi-vocational pastor that receives no salary (only housing allowance)?

Continue reading "Reporting Housing Allowance "

Apr 04, 2018

Withholding on Housing

Can the church elect to withhold FICA taxes on Housing and pay the employer portion on 941 quarterly tax forms and include the housing payments in the

Continue reading "Withholding on Housing"

Apr 04, 2018

Housing allowance

Is there a code for line 14 when you claim a housing allowance?

Continue reading "Housing allowance "

Apr 04, 2018

Expenses as Donations

I'm assuming that if a church cannot afford to reimburse legitimate expenses, the church could make a receipt available to recognize the expense as a donation

Continue reading "Expenses as Donations"

Apr 04, 2018

Restricted Funds

Over the past 2 years, we have held several benefit/silent auction signings to raise money for a Van Fund at our church. These monies were donated &

Continue reading "Restricted Funds"

Apr 04, 2018

"Love Offerings" for Guest Speakers, Singers, Musicians, Pastor's Birthday

I am trying to get a handle on how to properly process and record donations/contributions received through special offerings specifically designated for

Continue reading ""Love Offerings" for Guest Speakers, Singers, Musicians, Pastor's Birthday"

Mar 25, 2018

Donations to Church Owned Preschool

If we collect funds for Church owned Preschool, is this considered pass-through income? Or can we call it outreach when the funds are given to Preschool

Continue reading "Donations to Church Owned Preschool"

Mar 11, 2018

Housing Allowance reporting

so when filling out W3 form we wouldn't include the Pastor's housing allowance as wages if all the salary that the Pastor is receiving is the Housing Allowance?

Continue reading "Housing Allowance reporting"

Mar 10, 2018

Housing Allowance is hurting me, I think

My church allocated $20000. towards housing allowance for me, which is my whole salary. It feels like I am paying more because of the self-employment

Continue reading "Housing Allowance is hurting me, I think"

Mar 02, 2018

Exemption From Self-Employment Tax and Housing Allowance

I just read your article regarding the exemption of Housing Allowance from gross income. I'm a bi-vocational minister at a local church who is compensated

Continue reading "Exemption From Self-Employment Tax and Housing Allowance"

Mar 02, 2018

Is there a Housing Allowance Cap amount?

The IRS site has a Local Standards: Housing and Utilities chart that shows how much you can take as Housing allowance in your state county. If you

Continue reading "Is there a Housing Allowance Cap amount?"

Mar 02, 2018

Insurance payments for damage to property?

Our church has recently suffered severe water damage and we are starting to receive insurance checks to help offset the costs of the repairs. How do

Continue reading "Insurance payments for damage to property?"

Feb 22, 2018

Aplos Software for Church and Nonprofits

Discover why Aplos Software, church accounting software, is recommended by FreeChurchAccounting.

Continue reading "Aplos Software for Church and Nonprofits"

Feb 22, 2018

Church Accounting Software Reviews

Which church accounting software is best for your church? See what you need to look for in nonprofit accounting software and what other church administrators are saying about their accounting software

Continue reading "Church Accounting Software Reviews"

Feb 19, 2018

HA for Youth Pastor approved after the fact...

Our new Youth Pastor's housing allowance didn't make it in the budget approval prior to the new year, however, we did call a special meeting in January

Continue reading "HA for Youth Pastor approved after the fact... "

Feb 18, 2018

Accountable Reimbursement Plan Guidelines

Review the 3 requirements for accountable reimbursement plan reimbursements to be considered accountable.

Continue reading "Accountable Reimbursement Plan Guidelines"

Feb 14, 2018

Money Counts 9

Installed a new HP OfficeJet 6978 printer. Also have large Toshiba copier in the office. The HP is set as the default printer, but in check pay the system

Continue reading "Money Counts 9"

Feb 11, 2018

Understanding Financial Statements for a Church

Preparing and understanding financial statements for a church or nonprofit.

Continue reading "Understanding Financial Statements for a Church"

Feb 11, 2018

Love Offerings (Gifts): Taxable or Not?

Love offerings should follow a guideline to determine if they are taxable to the recipient and tax deductible to the donor.

Continue reading "Love Offerings (Gifts): Taxable or Not?"

Feb 11, 2018

"Freewill " offering for performing quartet

Our church is planning on allowing a quartet that performs sacred music to hold a concert at the church. The quartet wants to collect a freewill offering.

Continue reading ""Freewill " offering for performing quartet"

Feb 11, 2018

W-2 Form

Youth minister (part-time). Salary is $20,600. Expense allotment is $12,000 (accountable reimbursement). Housing allowance is $8600. Do I do a W-2

Continue reading "W-2 Form"

Jan 30, 2018

Non calendar fiscal year

We are on a July 1 to June 30 fiscal year. How do we handle the housing allowance? Vickey's Reply: Housing allowance payments are totaled and reported

Continue reading "Non calendar fiscal year"

Jan 30, 2018

W-2 Reporting

How to report on the W-2 employee paid 403b and Health insurance payments deducted from employees salary?

Continue reading "W-2 Reporting"

Jan 30, 2018

Retired Clergy Christmas Bonus

We have a retired pastor who receives a small retirement amount that is 100% Housing. He is issued a 1099-R. If we give the reitred pastor a Christmas

Continue reading "Retired Clergy Christmas Bonus "

Jan 30, 2018

Box 14

Is the proper wording for Box 14 Housing or can Parsonage be used as well? Vickey's Reply: Box 14 is an informational box for the employee (The IRS doesn't

Continue reading "Box 14"

Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?