Wednesday, February 09, 2005
Feb. 05 E-News
Stewardship E-Newsletter
February 2005
Bob Tallent, rgtallent@Comcast.net, 856-778-6117
www.bobbybaptist.blogspot.com
Behold the Tax Season is upon us! Let me say that, sadly, most professional tax preparers do not know how to properly prepare ministers’ income tax returns. Probably the most significant difference for functioning ministers (and retired) is that ALL of their housing costs are exempt from income tax (but NOT Social Security). To get this break, there properly needs to be a written statement of (total) housing costs approved in advance by the church or employing body. This statement can be much higher than you actually spend or deduct but you cannot legally deduct more than it states. If you have not done this for 2004, DO IT NOW FOR 2005! Estimate high, include maintenance, furnishings, insurances, utilities, everything!
There are many other factors that affect ministers’ taxes. For example, it is advantageous to have auto expenses reimbursed instead of a flat allowance. You can do this on a mileage basis. (Check the exact figure; it is around $0.32 to $0.37/mile.)
There are many tax guides for ministers available. The Annuity Board (now “GuideStone”) used to send out one free every year. Note that the details in these guides do not always agree and some are much easier to use than others.
I have for years used and recommended:
[B.J] Worth's Income Tax Guide for Ministers.
“This is the tax guide that helps ministers and religious workers avoid frustration and saves them time and money! It is for all ministers, theological students, missionaries, Christian school teachers, church and school board members, and tax consultants. Here is sound advice based on years of research and experience in preparing and auditing tax returns of Christian workers.” It is available at most Christian book stores ($17.99) or on line at www.worthfinancial.com/ .
A new resource! A new tool. Just available is a set of on-line Stewardship Sunday School (or small group) lessons. These are ideal for a month-long stewardship promotion in your church. Four separate “PDF” (format)lessons are now available. These include a full step-by-step leader guides and reproducible learner’s lessons. They are beautifully done and contain all needed teaching instructions. The lesson titles are: “Manage Money Wisely”, “Disciplined Giving”, “View Finances Wisely” and “Handling Money.” Go to www.Lifeway.com, search for “stewardship” and click on Stewardship Solutions. I would suggest downloading each lesson separately. I had problems trying to download all four at once. The cost is $4.95 for each lesson master downloaded.
Ideas for Easter: Check out the Easter Resources Index by Craig Webb on www.Lifeway.com
We are updating our web page and making a slight change in address: In the future it will be BRNonline.org (for “Baptist Resource Network”; change is from “.info” to “.org”). For stewardship stuff, go to the Ministries drop down menu, then to Stewardship.
February 2005
Bob Tallent, rgtallent@Comcast.net, 856-778-6117
www.bobbybaptist.blogspot.com
Behold the Tax Season is upon us! Let me say that, sadly, most professional tax preparers do not know how to properly prepare ministers’ income tax returns. Probably the most significant difference for functioning ministers (and retired) is that ALL of their housing costs are exempt from income tax (but NOT Social Security). To get this break, there properly needs to be a written statement of (total) housing costs approved in advance by the church or employing body. This statement can be much higher than you actually spend or deduct but you cannot legally deduct more than it states. If you have not done this for 2004, DO IT NOW FOR 2005! Estimate high, include maintenance, furnishings, insurances, utilities, everything!
There are many other factors that affect ministers’ taxes. For example, it is advantageous to have auto expenses reimbursed instead of a flat allowance. You can do this on a mileage basis. (Check the exact figure; it is around $0.32 to $0.37/mile.)
There are many tax guides for ministers available. The Annuity Board (now “GuideStone”) used to send out one free every year. Note that the details in these guides do not always agree and some are much easier to use than others.
I have for years used and recommended:
[B.J] Worth's Income Tax Guide for Ministers.
“This is the tax guide that helps ministers and religious workers avoid frustration and saves them time and money! It is for all ministers, theological students, missionaries, Christian school teachers, church and school board members, and tax consultants. Here is sound advice based on years of research and experience in preparing and auditing tax returns of Christian workers.” It is available at most Christian book stores ($17.99) or on line at www.worthfinancial.com/ .
A new resource! A new tool. Just available is a set of on-line Stewardship Sunday School (or small group) lessons. These are ideal for a month-long stewardship promotion in your church. Four separate “PDF” (format)lessons are now available. These include a full step-by-step leader guides and reproducible learner’s lessons. They are beautifully done and contain all needed teaching instructions. The lesson titles are: “Manage Money Wisely”, “Disciplined Giving”, “View Finances Wisely” and “Handling Money.” Go to www.Lifeway.com, search for “stewardship” and click on Stewardship Solutions. I would suggest downloading each lesson separately. I had problems trying to download all four at once. The cost is $4.95 for each lesson master downloaded.
Ideas for Easter: Check out the Easter Resources Index by Craig Webb on www.Lifeway.com
We are updating our web page and making a slight change in address: In the future it will be BRNonline.org (for “Baptist Resource Network”; change is from “.info” to “.org”). For stewardship stuff, go to the Ministries drop down menu, then to Stewardship.
# posted by Bob @ 1:55 PM 
