In order to “sweeten the pot” in a Clergy’s contract or Terms of Call, many times the church may offer to reimburse them for their unpaid Self-Employment Tax (SECA) and/or unpaid income tax. While it may seem like you’re living life tax free; think again. That reimbursement that many times a church classifies as “non-taxable”, is actually fully taxable under the law. According to IRS Revenue Ruling 68-507, “if the church or church agency pays amounts in addition to salary to cover the minister’s self-employment tax or income tax, these are also includible in gross income. (Rev. Rul. 68-507, 1968-2 C.B. 485).” That means it should be added to your salary on form W-2, which would make it su
Employers only have until the end of January to put your W-2 in the mail. Which means that you should have yours by now. However, being a business owner myself, I know that “stuff” happens. Sometimes it’s not the employers fault, and sometimes it is. Here’s what you can do to get your tax documents. 1. Contact Your Employer- Maybe you moved, or maybe it got lost in the mail. If your employer filled out your W-2, they can mail you a copy of it. Again, if you’ve moved, make sure you update your address with them. 2. Call the IRS- If your employer is being delinquent, you can call the IRS after February 23rd. You will need to give the IRS the following information. -Your name, address,
The IRS never calls or emails you when you owe them money. They always send a letter via US Mail. However, if you do get a phone call, email, or letter, please let Jacobson Clergy Tax Service review it before you pay it. Even if it's a legitamiate IRS letter, many times they are incorrect. You may owe nothing at all. For help with an IRS Letter or scam, call us at (609) 375-8295. You can also send us an email through our website jclergytax.com.
