Overview
This course reviews the preparation of tax returns for members of the clergy. It covers housing
allowances, fringe benefits, ministerial expenses, and accountable plans. We provide several practice aids for the church
and the minister.
Prerequisites
None
Objectives
We begin by defining a minister for tax purposes and then instruct how to prepare a 1040 with a minister for wages, consulting, self-employment tax and housing. We present how to determine the housing or parsonage exemption, how to establish the amount and how to prepare a return when confronted with an incorrect W-2. We also illustrate the election out of social security and how to calculate deductible expenses, concluding with a comprehensive example and completed 1040.
