Income Tax Results Made You Sick? It's Time for a Checkup.
May 4, 2016
Back when you started your job, you likely filled out a Form W-4. Since then, life has changed—possibly with a marriage, a new child, or a raise. Now that income tax filing season is over, did you end up owing taxes, when you expected a refund? Or perhaps you experienced month-to-month budgeting issues, because too much was being withheld from your wages.
Fixes for Future Tax Shock
Too much or too little in tax withholdings may cause headaches down the line, so it’s important to know which life events can affect your tax status. Here are a few:
- Change in marital status
- Change to number of exemptions
- Change in benefits
- Added or left a job
- Moved to a different county or state
- Qualified for tax exemption based upon pay
- Became or will become a student
- Used a non-accountable plan for business expenses
- Collected disability
- Earned non-wage income, such as dividends, alimony, or interest
- Reclassified from independent contractor to employee
As an added measure, look at your year-to-date pay statement, and conduct an income tax withholding status check. The IRS Withholding Calculator can help determine if you are on track. If not, a mid-year adjustment can be made.
Clergy can benefit from a withholdings review, too. A mid-year check can help keep a minister’s estimated taxes and housing expenses on track. The IRS Calculator contains instructions for self-employed workers, like some ministers, who make quarterly tax payments.
A New Form W-4 is Required
If you want to make changes to your withholdings or estimated tax payments, you must file a new Form W-4 with your payroll administrator. A “verbal” notice of change, or an email, will not work.
- July 22, 2021
- Thousands in Relief Funding Available to Ministries Through the Employee Retention Credit
-
-
Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps. This post includes some highlights about the credit and guidance on where to start to see if your ministry is eligible.
- April 21, 2021
- Take Time to Review Your Ministry's Child Protection Plan
-
-
April is National Child Abuse Prevention Month. Though child abuse may not be something you could ever imagine happening within your ministry, sexual abuse of a minor is one of the top five reasons churches end up in court, according to Church Law & Tax. Studies also show that a child is much more likely to be sexually abused by a trusted adult than a stranger.
- March 16, 2021
- Prepare for Severe Spring Storms Now
-
-
When severe storms strike, they can produce high winds and tornadoes. Damaging winds can wreak havoc on your ministry’s property and to buildings. A high wind event can crash debris through your windows, strip your siding, down trees on your parking lot, peel shingles off your roof, and fling back the flashing.
- February 25, 2021
- Catalytic Converter Theft on the Rise: Protect Ministry Vehicles
-
-
Thieves are taking advantage of soaring precious metal prices. Take steps to protect your ministry’s vehicles and property.
- February 5, 2021
- Avoid Frozen Pipes as Temperatures Plummet
-
-
As temperatures plummet, the risk of freezing pipes soars. Frozen pipes can cause costly messes that could also put your ministry on hold while you clean up.
- November 23, 2020
- COVID-19 and the Christmas Season
-
-
Preparing for this Christmas season may require additional creativity, due to the uncertainty of what COVID-19 may bring in our local community.
- October 28, 2020
- Guidance for Ministries About Boy Scouts' Bankruptcy
-
-
A mid-November deadline in the Boy Scouts of America’s (BSA) bankruptcy proceedings may have you wondering what the organization’s bankruptcy filing means for your ministry if you ever hosted or chartered Boy Scout Troops.
- October 1, 2020
- Applying for PPP Loan Forgiveness
-
-
Organizations that obtained Paycheck Protection Program (PPP) funding through the CARES Act can have their loans forgiven, turning them into grants. To qualify, each borrower must file a forgiveness application with its PPP lender, proving that it followed the rules. If your church, school, college, or camp meets all the criteria, 100% of its loan can be forgiven.
- March 30, 2020
- CARES Act: Churches Need to Apply Now
-
-
Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.
- March 6, 2020
- Coronavirus and Your Ministry: Tips for Prevention
-
-
As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.
- January 29, 2020
- Hosting a Game Day Bash? Brush Up on Copyright Basics
-
-
The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.
- Are You Covered If You're Injured Overseas?
-
-
Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.
- IRS Announces More Church Audits Regarding ACA Compliance
-
-
Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.
- July 3, 2019
- Celebrate Safely This Independence Day
-
-
July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.
- June 28, 2019
- Insurance is one of those things we forget about until we need it
-
-
National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.
- April 30, 2019
- Measles Cases Reach Record-Breaking Numbers
-
-
More than 700 confirmed cases of measles have been reported in the United States so far this year, making this outbreak the worst in decades.
- April 8, 2019
- Vehicle Registration Guidelines for Ministries
-
-
Do you use commercial vehicles that transport more than 15 passengers or carry cargo from one state to another as part of your ministry? If so, you are required to register with the Federal Motor Carrier Safety Administration (FMCSA) and obtain a USDOT number.
- March 14, 2019
- Returning to Tornado Damaged Areas
-
-
If your ministry buildings become damaged because of a tornado, or if your ministry plans to volunteer to assist with disaster recovery for those affected by these storms, be mindful of the dangers involved.
- June 20, 2018
- Check for Safety Before Putting Your Head in The Clouds
-
-
Thinking about taking a group from your ministry ziplining? Be sure to confirm that the site you choose complies with the new Kentucky state law that regulates aerial recreational devices.
- June 1, 2018
- June Is National Safety Month - Week 1: Emergency Preparedness
-
-
The National Safety Council has designated June as National Safety Month, so we want to make sure your ministry is doing everything it can to protect its people, property, and programs. Each week in June, we’ll tackle a different topic. Up this week: Emergency Preparedness.