It is that time of year. It seems every year the questions remain the same…Who does pastors taxes? Who should I use? Who understands ministers’ taxes? Who truly understands nonprofit taxes? The questions are good ones to ask because not every CPA or accounting firm is familiar with minister pay and taxation and the unique status of them and nonprofit organizations. 

Just a few tips:

• If possible, stick with a CPA or tax attorney. These professionals have completed a rigorous educational program, passed a difficult qualifying examination, and are subject to a comprehensive body of professional ethics.
• Find other ministers and nonprofits in your community who have their tax returns prepared by a professional and ask questions. Who do they use? Are they pleased? What is the cost? How many returns does this person prepare each year?
• Call CPAs directly: interview them especially if you are an ordained or licensed minister…ask if they prepare ministers’ tax returns and, if so, ask how many they prepare. You can also ask some basic questions to ensure Here are a couple of examples: (1) Are ministers employees or self-employed for Social Security purposes? Their answer should be: “Ministers are always self-employed for Social Security purposes with respect to their ministerial income.” (2) Can I claim my housing allowance exclusion in computing my self-employment taxes? There answer should be: NO.

Persons who are familiar with ministers’ taxes and nonprofit organizations taxes should be able to answer these few questions easily and knowledgeably.

Please call us or email us if we can be of assistance. We can help provide some assistance and a network of professionals to help you and your organization through the tax code.