Basic HTML Version
PASTOR GENERAL'S REPORT, DECEMBER 30, 1986
PAGE
9
( 4 )
( 5 )
Expense Records (yellow copies) not sent in promptly.
The Central Clearing Account checks regularly clear the bank three
to four weeks before we receive the Expense Record forms for back-
up.
Delays in sending in the Expense Record forms create a
substantial amount of extra work for those trying to account for
these expenses. New checkbooks will not be issued until all checks
that have cleared the bank have been accounted for.
Expense Records incompletely filled out
or
lacking receipts.
Expense Records sent in without explanations, dates, signatures for
individuals being helped through a third party
or
lacking receipts
for Miscellaneous Church Expenses over $25 create additional work
because someone has to write to acquire this information after the
fact. Please carefully
f i l l
out the Expense Record form
immediately after writing the check while the information is still
easily remembered.
A l l
Miscellaneous Church Expenses over
$25
must
have a receipt sent in with the Expense Record.
The Central Clearing Account is a great convenience in that it allows
ready access to funds to handle member assistance and other local church
needs. We need your complete compliance with -all the policies regarding
its use
so
that this convenient method
of
administering these funds can
continue to be available to everyone.
Social
Security
Coverage Available
for
0,s.
Hinisters
The Tax Reform Act
of 1986 provides a one-time irrevocable election back into the Social
Security system for those who have previously elected out
of
it. This
option will probably be available until you file your 1987 tax return on
April 15, 1988. If you are thinking about this change, you will want to
consider a number
of
items, the least of which is not the cost.
The rates a minister would pay are those
of
a self-employed person, not
those of an employee. The self-employed rate
for
1986
is
12.3%
of all
income up to $42,000. This rate is scheduled to increase in the future.
And, don't forget that this is figured on your salary PLUS the amount of
the housing allowance. The allowance
is
excluded from income tax but not
from Social Security.
It
will be a big bite out of your income if you
elect to go on the Social Security system.
Good
Hews
for
0.8.
Ministers
Who
O m
Hores
The Tax Reform Act of 1986
has
reinstituted the "double deduction" provision for ministers who
own
their homes and itemize deductions on their income-tax returns.
As
most
of you realize, this means that mortgage interest and real-estate taxes
can continue to be deducted from taxable income even though they have
been paid with the tax-exempt housing allowance.
In addition, this provision has been made retroactive for those who have
purchased homes since January 3, 1983.
If
you are in that situation, you
would be well advised to consider refiling tax returns
for
the years
during which you owned your home. This could be applicable to the 1983,
1984 and 1985 tax years. Some ministers are eligible for substantial
income tax refunds.