The Zondervan 2001 Minister's Tax & Financial Guide

by Busby, Dan

• ISBN13: 9780310232933
• ISBN10: 0310232937
• Edition: Yearly Ed.
• Format: Paperback
• Copyright: 2000-11-01
• Publisher: Zondervan

Summary

This accessible, advantageous guide has everything ministers need to know to prepare tax returns, and even includes sample forms. Busby also offers savvy money-saving strategies and sound advice for financial planning. Clear and comprehensive, the 2001 guide is loaded with great tips, including: tax-smart tips for ministers, the ten biggest tax mistakes ministers make, and clearly documented changes from last year's tax code.

Table of Contents

Recent Developments	1	(8)
Form 1040 Line by Line	9	(6)
Taxes for Ministers	15	(14)
Ministers serving local churches	16	(2)
Evangelists and missionaries	18	(1)
Members of religious orders	18	(2)
Ministers in denominational service, administrative, and teaching positions	20	(2)
Individuals not qualifying for ministerial tax treatment	22	(1)
Social security status of ministers	23	(1)
Income tax status of ministers	23	(3)
Forms and schedules for the minister	26	(1)
Importance of the employee vs. self-employed decision	27	(1)
Recommended filing status	28	(1)
Compensation Planning	29	(8)
How much should a minister be paid?	30	(1)
Plan your compensation	30	(3)
Avoid recharacterization of income	33	(1)
Use fringe benefits wisely	34	(2)
Use accountable expense reimbursements	36	(1)
The Pay Package	37	(22)
Should you delay paying tax on a portion of your salary?	37	(1)
Can churches discriminate when providing fringe benefits?	38	(1)
Tax treatment of compensation, fringe benefits, and reimbursements	39	(17)
Table of compensation, fringe benefits, and reimbursements	56	(3)
Retirement Planning for Ministers	59	(8)
Preparing for retirement	60	(3)
The keys to social security	63	(1)
Taking out your retirement money	64	(3)
Home Sweet Home	67	(18)
Types of housing arrangements	69	(2)
Structuring the housing allowance	71	(6)
Reporting the housing allowance to the minister	77	(1)
Accounting for the housing allowance	77	(2)
Other housing allowance issues	79	(3)
Housing allowance worksheets	82	(3)
Business Expenses	85	(22)
Accountable and nonaccountable expense reimbursement plans	85	(3)
Documenting and reporting business expenses	88	(1)
Travel and transportation expenses	89	(4)
Auto expense deductions	93	(6)
Home-office rules	99	(2)
Other business and professional expenses	101	(4)
Allocation of business expenses	105	(2)
Social Security Tax	107	(12)
Computing the self-employment tax	108	(1)
Both spouses are ministers	109	(2)
Self-employment tax deductions	111	(1)
Use of voluntary withholding agreement to pay social security taxes	111	(1)
Opting out of social security	111	(4)
Opting back into social security	115	(2)
Working after you retire	117	(1)
Canada Pension Plan	118	(1)
Paying Your Taxes	119	(12)
Tax withholding	119	(1)
Estimated tax	120	(3)
Excess social security withheld (FICA)	123	(1)
Earned income tax credit	123	(1)
Extension of time to file	123	(2)
Extension of time to pay	125	(1)
Filing an amended tax return	126	(5)
Sample Returns	131	(27)
Minister-employee for income tax purposes (accountable plan)	133	(10)
Minister-employee for income tax purposes (nonaccountable plan)	143	(15)
Citations	158	(8)
Index	166	(4)
10 Biggest Tax Mistakes Made by Ministers	170