As 2022 comes to a close and many look at the start of a new year, we want to take a moment to say thank you to the many pastors and church leaders we have the joy of serving.
Leading and shepherding a church body can be difficult, but so many of you are faithful and pour yourselves out for the people in your congregations and communities.
Tax time is almost here. If you’re like most people, you have lots of questions about taxes: What forms does my church need to file and when? Will we meet all the church tax filing requirements? Do we use paper forms, use the e-file service, or create a file upload?
We’re here to help you get re-acquainted with federal and state requirements so you can be prepared and minimize your stress.
Let’s go over the most important forms you need to think about for Tax Day.
The most popular forms are the W-2, 1099-MISC & 1095-C. The W-2 and 1099 are required to be filed with the federal government and most states. For tax year 2022, the 1095-C is required to be filed to the IRS federally and in three states – California, New Jersey, and Rhode Island – and the District of Columbia[i].
Currently, the e-file threshold for these forms stands at 250 or more. There are proposed changes, however, that would lower the threshold to 100 initially and then to 10 before eventually mandating e-filing. As of this posting, the new changes have not been finalized, so the 250 form guidance remains.[ii]
Here’s a look at these three most widely used forms in church tax filing…
There are other forms you may be required to file, such as 1099-DIV, 1099-INT, or 1099-R to name a few. For information on these and other forms and deadlines, we recommend you visit IRS.gov or consult a tax expert.
We want to help you be a responsible steward of your ministry’s finances and keep your data organized. There is a lot to think about and plenty of details involved with church tax filing requirements. Need help managing and organizing your finances? You can get in touch with us here to see how we might be able to help.
[i] https://www.taxbandits.com/aca-forms/form-1095-c-due-date/
[ii] https://www.nysscpa.org/news/publications/the-trusted-professional/article/irs-to-gradually-lower-e-filing-return-threshold-requirement-to-10-072721
[iii] https://blog.checkmark.com/w2-deadline-penalty-and-extension/#:~:text=W-2%20Deadline%20for%202022%20%20%20%20Form,SSA%20Electronically%20%20%20January%2031%2C%202023%20
[iv] https://www.taxbandits.com/aca-forms/form-1095-c-due-date/
[v] ibid
Christmas is known as “the most wonderful time of year”, but for church staff, it’s also one of the busiest. While adding a church staff Christmas party to the mix can feel overwhelming, it also can be a great way for your team to step back from the craziness, relax, and celebrate together.
Heading into a new year means implementing that new church budget you and your team have spent so much time working on. If you’re like most churches, you’ve made cuts and adjustments to help reduce costs and best steward your resources. As a result, one line item that may have been updated is your church software budget.
There is often an imbalance in the time & energy spent inviting people to church vs. following up with people who have attended. This is a problem because people often escape out “the back door” without notice. One of the most effective ways to counteract this is implementing a system to ensure effective follow-up in church.
The holidays are in full swing, which means it’s a busy season for churches. But with all the business, don’t forget the New Year is just around the corner and that means year-end giving statements will need to be prepped and sent out.
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