- 1). Keep meticulous records as a minister. As a minister, you will receive money from various sources. If you are a pastor for a church, you will most likely get a W-2 or 1099. Use this as a guide when filing taxes.
- 2). Tally all income for the previous tax year. Make sure that whatever you have been given as an income (salary, offerings, love gifts, etc.) is verifiable by documented records.
- 3). Encourage givers to use an envelope provided by the church or to pay by check or credit card for proper documentation of the income amount.
- 4). File your taxes using the IRS 1040 form. Under taxable income, enter the total amount of money made over the last year. Any expenses related to ministries such as traveling expenses (hotels and rental cars, airline tickets and food) while ministering and other expenses like office supplies should be entered under deductions. Make sure that you can verify the expenses with receipts when the time comes to file your taxes in the event of an audit.
- 5). Subtract deductions from your income and this will give you the taxable income. Use the chart provided by the IRS to find how much tax you owe. Write down the amount and make provisions to pay it by April 15 of that year.
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