“Should taxes be withheld on this check?”
“How do we figure out an appropriate Housing Allowance?”
“What exactly do they mean by ‘tax-free’?” (Hint: It’s not what you think!)
Richard Hammar’s Church and Clergy Tax Guide contains pretty much all the information you’ll need on church and clergy taxes, including housing allowance questions, employee vs. contractor issues, and it’s updated each year to adapt to the most current tax code adjustments.
The Church and Clergy Tax Guide. will be even more important for you if you are in a church plant that hasn’t paid anyone before or if you have no previous experience with the weirdness of clergy tax law (particularly Housing Allowances!). There are some really smart people that know business and taxes, but still don’t have a clue when it comes to paying pastors. And TurboTax isn’t going to help your people out when they are filing tax returns either.
You Need To Know
Undoubtedly, you want to be honorable with Jesus’ money. Knowing the law in this area is critical to making sure that is happening. You also want to pay your people well and you can’t do that if you don’t know how taxes are different for clergy than they are for normal employees.
If you are a new pastor, board member, or somehow responsible for church finance, you’ll find this book worth the money.