When should the church designate a housing allowance for a minister? Should it be done even if there is no one on salary at the church? Absolutely! The best time for housing allowance designations is before anyone receives any salary! How about the Housing Allowance Clarification Act under section 107 of the Internal Revenue Code? It requires that housing expenses be calculated differently than in the past. We can properly setup the designation of the housing allowance for your church so that the pastor, whether on salary or not, will never miss the opportunity to reduce his or her taxes each year. Also, did you know that section 1402 of the code allows a minister to apply for self employment taxes? When combined with the housing allowance, ministers will save thousands of dollars on taxes, but many will actually get bigger refunds when they do it right. Please see below for the details on how the Minister's Kit can help your church and pastor enjoy the best that the tax code has to offer.
- We prepare your housing allowance under the new rules
- We prepare the minister's application for self employment tax exemption
- The church guide to managing a minister ordination program
Minister's Kit Price: $348.00
Call us toll free 877-494-4655
We prepare the minister's housing allowance
The Best Tax Savings Plan In America!
The Housing Allowance is one of the best tax saving benefits that exists for pastors. Every pastor in America, whether or not he or she is on salary at the church, needs to have a housing allowance designation set up by the church. By setting up this program, the minister will be able to save thousands of dollars every year in taxes. If properly implemented, any minister can exclude home expenses from his or her income. These home expenses range from rent, principle and interest, taxes, appliances, repairs, furniture and much more, so long as those expenses provide the minister with a home. It does not matter whether you own or rent a home, if you are a licensed or ordained minister, you can create a housing allowance program and save big on taxes.
How Has The Housing Allowance Changed In Recent Years?
Congress recently passed the Clergy Housing Allowance Clarification Act. The new act requires ministers to calculate their housing allowance using three different scenarios in order to make an accurate calculation. Though it has been around for several years, most ministers are unaware that they have been calculating their housing allowance incorrectly. This can result in severe IRS penalties, plus interest and back taxes. It is important to clearly understand how the Clergy Housing Allowance Clarification Act requires a minister to calculate the housing allowance.
In this services package, StartCHURCH will customize a Housing Allowance program that is right for you and that will grow with you through the years!
We prepare the application for self employment tax exemption
Applying for the Self Employment Tax exemption is one of the best decisions you can make as a minister!
Tens of thousands of ministers across America do not know the facts about self employment tax exemption. Any minister who properly opts out of social security will still receive social security benefits when they retire, so long as they have at least 40 credits applied to their account.
Many sincere, but misinformed CPA's and tax attorneys advise pastors and ministers not to opt out on the premise that if they do, they will not get social security benefits at retirement. Furthermore, they tell "older" ministers who are entering ministry in their late 40's ans 50's that they are so close to retirement that it would not be worth applying for because the savings would not be worth the lost social security benefits. This is bad advice.
You will not lose your social security benefits!
Let me explain...
When you opt out of social security, you are not opting out of the social security system altogether. You are simply making the earnings you receive while in ministry as a pastor, evangelist or ordained minister exempt from self employment tax. The IRS clearly tells us in Letter 287C EO that if you opt out of social security, it only pertains to income that you earn as a minister of the gospel. Below is a quote.
"If we allow your exemption (from self employment tax), it will apply only to earnings from services as a minister, member, or practitioner, under Section 1402(e) of the Internal Revenue Code."
Any income you make outside of ministry is still subject to self employment tax, and it must be paid.
In this services package, StartCHURCH will fill out all of the forms for you to Opt out of the Self Employment Tax! Ensuring that your paperwork is done right the first time!
The church guide to managing a minister licensing and ordination program
Becoming a licensed or ordained minister is not a trivial matter.
It represents the setting apart of an individual for ministry, but how does one become legally licensed or ordained within the laws that govern our society?
Our 2009 edition teaches you how to properly set up and administer a licensing and ordination program through your church or ministry - one recognized in all fifty states and in most countries around the world.
Being in compliance with state and IRS requirements as a minister is a must, and within the pages of this product, we show you how!There are many misconceptions about licensing and ordination in existence today. We cover all the myths, teaching you “who” and “how” to ordain a minister, and whether the once ordained always ordained concept is true.
Licensing and the IRS
The courts have ruled that your church or ministry has the right to license and ordain its own ministers. However, the courts have also allowed the IRS to establish criteria to determine whether a minister qualifies for special tax benefits. By law, the IRS cannot judge or question your church or ministry's right to license and ordain, but it can scrutinize it for tax purposes. Confusing? Yes! This newly revised resource will show you how to properly set up a licensing and ordination program in your ministry that meets all state and federal requirements. You and your ministers not only qualify to solemnize marriages, but to also take advantage of special tax benefits extended to ministers by congress under Subsections 107,1401 and 1402.
Other Ways This Resource Will Help You
There are many potential ministers who are called of God and eager to work in His Kingdom but who are denied a ministerial covering by their denomination because they fail to meet the standards that have been set forth. Though qualified in the Lord's eyes, a mountain of obstacles restricts their ability to become a minister. What are they to do?
This resource has been created especially for the needs of these individuals!
StartCHURCH's President, Reverend Raul Rivera's father was once in this unfortunate position. He was denied a minister's license necessary to become a missionary (in his denomination) because he did not qualify. In order to qualify, he would have had to obtain a four year, college degree; a huge obstacle as he never even completed the third grade! In 1994, his father became an ordained minister of the church where Reverend Raul Rivera (author) was pastor. Upon receiving status as an ordained minister, his father went to the mission field. Today, his father is a full-time missionary to the poor, having rescued numerous orphans in both Venezuela and Honduras. The last number of years he has been constructing orphanages where the rescued children can find refuge and healing, and where visiting missionaries receive on-site training in how to minister to children. Had it not been for the restrictive and burdening requirements of his denomination, he would probably have gone to these countries only as a licensed minister. We need to remember that it is God who calls and ordains; man just recognizes what God is doing. Today, Reverend Rivera's father continues to give his life on behalf of orphan children in foreign countries. Many individuals from the same denomination that denied his ordination now visit his ministry and receive missionary training.
The Latest Features Include:
- Comprehensive guide
- Minister license application
- Different types of licenses
- State requirements concerning marriages, for all 50 states
- How the founder of the church can become ordained
- Clear explanations on who can ordain, how it is done, and how the pastor or founder can receive authority to license/ordain other people in and through his/her own church (in all fifty states)
- Sample record keeping forms
- Sample renewal applications
- Ministers and taxes (Housing Allowance and Social Security)
- Is the concept of "Once Ordained Always Ordained" true?
- Why it is important for your church or ministry to have an ordination program
- 2 sample ordination ceremonies
Minister's Kit Price: $348.00
Call us toll free 877-494-4655