Zondervan 2018 Minister's Tax and Financial Guide: For 2017 Tax Returns

by Dan Busby, Michael Martin, John Van Drunen

Overview

For years, ministers have trusted the Zondervan Minister's Tax and Financial Guide to save them time and money. This easy-to-understand workbook simplifies the tax code and offers dozens of tips to reduce your tax bill. For 2018, the guide includes a line-by-line explanation of the 1040 Form as well as information on recent changes in the tax code. Dan Busby also explains the easy steps you can take now to minimize next year's tax bill. This 2018 edition also includes sound retirement planning helps, compensation planning guidance, and ways to maximize business expense reimbursements. Zondervan 2018 Minister's Tax and Financial Guide is also useful to church treasurers, business administrators, and tax preparers who assist ministers.

Product Details

ISBN-13:	9780310597100
Publisher:	Zondervan
Publication date:	01/09/2018
Sold by:	HarperCollins Publishing
Format:	eBook
Pages:	192
File size:	12 MB
Note:	This product may take a few minutes to download.

About the Author

Dan Busby has a Master’s degree in business from Emporia State University and he has worked as controller of a university medical center, partner-founder of a CPA firm, and chief financial officer for a religious denomination. He currently serves as the president with the Evangelical Council for Financial Accountability (ECFA), Winchester, Virginia, and he is coauthor of The Christian's Guide to Worry-Free Money Management. He has been an author of the Zondervan tax guides for 28 years has authored or coauthored many other books, including TRUST, Lessons From the Nonprofit Boardroom, and Lessons From the Church Boardroom.

 

Michael Martin is an attorney with a Juris Doctor from Regent University School of Law, where he was editor-in-chief of the Regent University Law Review, and has an undergraduate degree from Oral Roberts University. He is passionate about helping churches and other Christ-centered organizations comply with ECFA standards. He currently serves as vice president and legal counsel for ECFA, Winchester, Virginia.

John Van Drunen is an attorney and a certified public accountant with a Juris Doctor from Regent University School of Law and accounting degree from Anderson University. He has devoted much of his time to working in tax-exempt tax policy and other nonprofit related matters. He currently serves as executive vice president and general counsel for ECFA, Winchester, Virginia.

Table of Contents

Introduction vi

1 Taxes for Ministers 1

Ministers ordained, licensed, or commissioned 3

Performing ministerial services 5

Individuals not qualifying for ministerial tax treatment 9

Income tax status of ministers 9

Importance of the employee vs. self-employed decision on income taxes 11

Recommended filing status for income taxes 13

Social security tax status of ministers 13

2 Compensation Planning 15

Determine the current compensation 15

Plan the compensation package 19

Routinely evaluate compensation 22

Use fringe benefits wisely 22

Use accountable expense reimbursements 24

Checklist for churches demonstrating integrity in compensation-setting 26

3 The Pay Package 29

Avoiding the nondiscrimination rules 29

Tax treatment of compensation elements 30

Reporting compensation, fringe benefits, and reimbursements 50

4 Housing Exclusion 53

Types of housing arrangements 56

Establishing and modifying the housing designation 57

Reporting the housing allowance to the minister 60

Accounting for the housing exclusion 61

Other housing exclusion issues 62

Housing exclusion worksheets 66

5 Business Expenses 69

Accountable and nonaccountable expense reimbursement plans 70

Substantiating and reporting business expenses 73

Travel and transportation expenses 74

Auto expense deductions 79

Home-office rules 85

Other business expenses 87

Allocation of business expenses 91

6 Retirement and Social Security 95

Preparing for retirement 96

The fundamentals of social security 99

Taking out retirement money 100

The two social security tax systems 101

Computing the self-employment tax 102

Both spouses are ministers 105

Self-employment tax deductions 105

Use of income tax withholding to pay social security taxes 106

Opting out of social security 106

Working after retirement 110

Canada Pension Plan 111

7 Paying Taxes 113

Tax withholding 113

Estimated tax 115

Excess social security withheld (FICA) 115

Earned income credit 118

Extension of time to file 119

Extension of time to pay 121

Offers in compromise 122

Filing an amended tax return 124

Form 1040 - Line by Line 127

Sample Returns 146

Example No. 1

Minister-employee for income tax purposes (accountable plan) 146

Example No. 2

Minister-employee for income tax purposes (nonaccountable plan) 156

Citations 175

Index 181

Projected 2018 Filing Dates 184