Making Tax Season Simple
By America Kimlinger
Does it feel like tax season just ended? Well, here we are again! Tax season often feels like a whirlwind of paperwork, deadlines, and financial stress. If you handle your taxes, you know the drill—sorting through piles of documents, managing numerous forms, and meticulously double-checking to avoid mistakes. It’s no surprise that it can feel overwhelming. However, with the right mindset and support, tax season can become a manageable, even smooth, experience.
At StartCHURCH, we want to make this process as smooth as possible. That’s why we’ve put together these tried-and-true tax tips that have helped many pastors and ministry leaders just like you:
1. Start Early to Avoid Last-Minute Stress
Procrastination is tempting, but rushing at the last minute often leads to mistakes and missed savings. Starting early gives you the time to ensure everything is accurate, and it also means you’ll get your refund sooner. Trust me, the peace of mind is worth it.
2. Organize Your Financial Records
Preparing your financial documents in advance can greatly alleviate the stress associated with tax season. By organizing your records early, you streamline the process, making it far more efficient for your CPA or tax preparer to handle your filing.
3. Find the Right Tax Professional
Not all CPAs are familiar with the intricacies of ministry taxes. Choosing a preparer who understands your specific needs can make a world of difference. They’ll ensure that everything from your housing allowance to special deductions is correctly accounted for.
4. Choose Direct Deposit
Opting for direct deposit not only speeds up your refund but also minimizes errors. It’s a secure and efficient way to handle your returns.
5. Report All Income, assets, and legal entities
Be transparent about your income, real estate transactions, and any legal entity changes. Informing your preparer is crucial to ensuring accurate filings and avoiding surprises later.
6. Handle Unemployment Benefits Properly
If you’ve received unemployment benefits, remember that they are typically taxable income. Discuss with your preparer how to report them correctly on your Federal and State returns.
7. Don’t Panic if You Can’t Pay
If you can’t pay your taxes immediately, you can apply for an IRS installment agreement to set up monthly payments with a reduced penalty rate. Alternatively, you can pay with a credit card, though processing companies may charge a convenience fee.
8. Request an Extension if Needed
Sometimes, you just need more time. Filing for an extension can give you breathing room, but remember, it doesn’t extend the time to pay any taxes owed.
9. Send Copies, Keep Originals
Always keep your original documents safe and only send copies to your preparer. This safeguards against any potential loss of important files.
10. Life Changes? Keep Your Preparer in the Loop
Major life events, such as marriage, a new baby, or a child moving out, can impact your taxes. Ensure your preparer knows about these changes so you can file your return accurately.
A Partner You Can Trust
You don’t have to face tax season alone. At StartCHURCH, we’ve helped hundreds of pastors with their personal and ministry tax needs, and our team is ready to answer your questions and guide you through the complexities of tax season. Whether you're looking for advice on deductions or need assistance with compliance, we're here to help. Plus, if you need a helpful reminder of key 2025 deadlines and tips, be sure to download our Free Tax Calendar here. Give us a call at 770-638-3444 – we’d love to assist you in making this your smoothest tax season yet!
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