It is advisable for employees who owed money with their 2022 Form 1040 to complete a new Form W-4 at this time.”Īnd don’t leave out ministers, says Frank Sommerville, a CPA, tax attorney, and senior editorial advisor for Church Law & Tax. She explained that the tax withholding tables “don’t appropriately take a dual-earner household into consideration. “Employees may be caught short on taxes paid if both spouses are working.” “Many employees are surprised when they complete their tax return and find they owe money,” says Elaine Sommerville, a CPA and senior editorial advisor for Church Law & Tax. This will ensure accurate tax withholding. Review W-4 formsĪll employees should review their W-4 form and submit a new form if circumstances have changed. “Because housing allowances can only be provided prospectively (that is, after they have been approved by the board or the board’s designee), obtain approval from the board prior to January 1,” advises Rob Faulk, a CPA and partner with CapinCrouse. Designate a housing allowanceĪ key end-of-year financial task for a church board or congregation should be designating a housing allowance for 2024 for ministers who own or rent their home (and for ministers who live in a parsonage and who pay some of their housing expenses from their own funds).įind sample housing allowance and parsonage allowance resolutions in chapter 6 of Richard Hammar’s annual Church & Clergy Tax Guide. Here’s to finishing 2023 strong and getting off to a great start in 2024! 1. To help you navigate this, Church Law & Tax works with tax and accounting experts to develop this checklist each year. Churches should complete several end-of-year financial tasks before January 1, 2024.
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