Zondervan Minister's Tax and Financial Guide 2012: For 2011 Tax Returns

by Busby, Dan; Van Drunen, John

• ISBN13: 9780310330875
• ISBN10: 0310330874
• Format: Paperback
• Copyright: 2012-01-03
• Publisher: Harpercollins Christian Pub

Summary

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 2011, 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 2012 edition also includes sound retirement planning helps, compensation planning guidance, and ways to maximize business expense reimbursements.Zondervan Minister's Tax and Financial Guide is also useful to church treasurers, business administrators, and tax preparers who assist ministers.

Author Biography

Dan Busby is a certified public accountant with a master's degree in business from Emporia State University. 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 president of the Evangelical Council for Financial Accountability, Winchester, Virginia, and he is coauthor of The Christian's Guide to Worry-Free Money Management. 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 vice-president and in-house legal counsel for the Evangelical Council for Financial Accountability, Winchester, Virginia.

Table of Contents

Recent Developments	p. 1
Form 1040 - Line by Line	p. 5
Taxes for Ministers	p. 21
Ministers serving local churches	p. 22
Evangelists and missionaries	p. 24
Members of religious orders	p. 24
Ministers in denominational service, on church assignment, and in other service	p. 26
Ministers ordained, licensed, or commissioned by a local church	p. 29
Individuals not qualifying for ministerial tax treatment	p. 30
Social security tax status of ministers	p. 30
Income tax status of ministers	p. 31
Importance of the employee vs. self-employed decision	p. 34
Recommended filing status	p. 35
Compensation Planning	p. 37
Determine the current compensation	p. 37
Plan the compensation package	p. 41
Use fringe benefits wisely	p. 44
Use accountable expense reimbursements	p. 45
The Pay Package	p. 49
Delaying a portion of your pay	p. 49
Which fringe benefits must be offered to all employees?	p. 50
Tax treatment of compensation elements	p. 51
Reporting compensation, fringe benefits, and reimbursements	p. 70
Housing Allowance	p. 73
Types of housing arrangements	p. 75
Establishing and modifying the housing allowance	p. 77
Reporting the housing allowance to the minister	p. 80
Accounting for the housing allowance	p. 81
Other housing allowance issues	p. 82
Housing allowance worksheets	p. 86
Business Expenses	p. 89
Accountable and nonaccountable expense reimbursement plans	p. 90
Substantiating and reporting business expenses	p. 93
Travel and transportation expenses	p. 94
Auto expense deductions	p. 99
Home-office rules	p. 105
Other business expenses	p. 107
Allocation of business expenses	p. 111
Retirement and Social Security	p. 115
Preparing for retirement	p. 116
The fundamentals of social security	p. 119
Taking out your retirement money	p. 120
The two social security tax systems	p. 121
Computing the self-employment tax	p. 123
Both spouses are ministers	p. 125
Self-employment tax deductions	p. 125
Use of income tax withholding to pay social security taxes	p. 126
Opting out of social security	p. 127
Working after you retire	p. 131
Canada Pension Plan	p. 131
Paying Your Taxes	p. 133
Tax withholding	p. 133
Estimated tax	p. 135
Excess social security withheld (FICA)	p. 135
Earned income credit	p. 138
Extension of time to file	p. 139
Extension of time to pay	p. 141
Offers in compromise	p. 142
Filing an amended tax return	p. 143
Sample Returns	p. 146
Example No. 1 Minister-employee for income tax purposes (accountable plan)	p. 146
Example No. 2 Minister-employee for income tax purposes (nonaccountable plan)	p. 156
Citations	p. 174
Index	p. 180
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