CLERGY TAX
Now that 2025 has ended, you have
probably received a W-2 form, reporting your taxable wages, any housing
allowances and exclusions, and any federal or state income taxes that you had
withheld, as well as other tax forms and documents. What has been reported will
be used to prepare your income tax returns. There’s really no chance to make
any real changes that will help you at this point.
Even if you are planning to wait
until much closer to the “regular” tax due date of April 15th, or
even later in the year if you filed an extension, you should take some time
with your tax preparer to see where things stand for you. Have you paid in
enough taxes? Do you have copies of all of your unreimbursed business expenses and
mileage? Do you have every tax document you should have? Have you calculated
your actual housing costs? This will let you prepare in advance.
But you should also work with your
tax professional to do a projection for 2026, and see what you can do to
minimize any payments you have to make.
·
Should
you have federal and state income taxes withheld from your paychecks?
·
Should
you pay quarterly estimated taxes?
·
Have
you claimed enough as housing allowance/housing exclusions?
·
Have
you calculated your actual housing costs?
·
What
is the amount of self-employment tax you’ll have to pay, and how can you spread
out the payment of those taxes?
·
Are
you tracking your business expenses, submitting them to the church for
reimbursement, and providing unreimbursed amounts to your tax preparer?
·
Are
you tracking your “business” mileage?
All of these questions are important
to consider and answer and work on now so you can prepare yourself for the
filing of your 2025 taxes and while you can make changes and decisions that
will help you for 2026!
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