2020 Tax Calendar for Churches and Ministries

By Christine Bove

Tax season can be an overwhelming time of year for many, especially for pastors and ministry leaders. 

We often receive calls from pastors and administrators asking what is needed to complete taxes and forms required by the IRS. There are so many details to keep up with. And missing these tax deadlines provides more worries and troubles on top of everything else a ministry leader is already concerned about.

To make this year your best yet and much less overwhelming, we have created a 2020 tax calendar for churches and ministries.

Use this blog as a helpful resource for some of the most important, encroaching deadlines for forms and taxes. Keeping these dates will help you jumpstart your new year by making sure your ministry starts off on the right foot and prevent future issues.

Important first quarter tax deadlines and dates for 2020

Early January

Hold an annual meeting of the Board of Directors. 

In this meeting, you will want to cover:

• Designating the minister’s housing allowance
• Elections of directors and officers
• Any ratifications of prior acts
• Financial reports

If you don’t know what the agenda should be or what to cover in the annual meeting, we provide a service that can prepare annual meeting minutes for you. With meeting minutes prepared for you, all you have to do is gather your board members together and approve each item listed. 

If you have not yet held your annual board meeting, you will want to schedule that as soon as possible.

January 15

Add up qualifying housing allowance expenses.

With the StartRight Service, ministers who have had a housing allowance properly designated by the church must add up their qualifying housing allowance expenses. You can do this by calculating the actual value of the home and the fair market rental value.

Ministers must make the estimated tax payment for the fourth quarter of 2019 using Form 1040-ES. 

If your church or ministry has non-ministerial employees and deposits payroll taxes monthly, the December 2019 payroll tax deposit is due. This tax deposit occurs on the 15th of every month unless the 15th falls on a weekend or holiday.

Need help with creating your annual board meeting minutes? Look to our KeepRIGHT Service. 

January 31

Provide tax-deductible contribution statements.

For everyone who has made contributions to your church or ministry, you will need to provide them with tax-deductible contribution statements. 

Provide and file tax forms.

W-2

You will also need to provide Form W-2 to all of your employees, including the pastor. 

Be sure to carefully document any qualifying health insurance premiums your church paid for its staff. Per IRS requirement, you will report that information on line 12 of Form W-2. 

For those who have the Tax Suite, all you have to do is follow the step-by-step instructions to file Form W-2 electronically. 

If you would rather have someone else file your taxes, our Minister's Tax Return Service will file your taxes correctly. Plus, you'll save money by getting every legal tax benefit allowed to you.

W-3

Send Form W-3, Transmittal of Wage and Tax Statements, to the Social Security Administration along with Copy A of all employee W-2s you issued for the calendar year 2019.

If you have the Tax Suite, all you need to do is follow the instructions to file Form W-3 with your W-2 forms electronically. If filed electronically, the due date is extended to April 2.

1099-MISC

Provide 1099-MISC forms to independent contractors, including guest speakers and unincorporated landlords who received $600 or more in payments or honorariums in 2019. 

If you paid anyone in royalties of $10 or more, give that individual a Form 1099-MISC. 

If you used the services of an attorney and paid $1 or more for his or her services, you must issue a 1099-MISC. 

Again, for those with the Tax Suite, you can just follow the instructions for filing the 1099-MISC and Form 1096.

You can refer to here for any further forms and instructions regarding filing to the IRS. 

Apply for self-employment tax exemption.

Self-employment tax exemption is an excellent way for pastors and ministers to save on their taxes. You can learn more about this tax benefit by reading one of our blogs here.

This is the perfect time to apply for the Self-Employment Tax Exemption before the deadline on April 17.

To speak to a specialist about this, call us at 770-638-3444.

File Form 941 and others.

File Form 941 (payroll tax) for the 4th quarter of 2019 and deposit any unpaid taxes.

Or, if your employment tax liability was $1,000 or less and the IRS sent you a written letter to allow you to use 944, file Form 944 for the 2019 tax year.

File Form 945 to report income tax withheld (backup withholdings) for 2019 on independent contractors, including citizen and non-citizen guest speakers.

February 14

If your church or ministry has non-ministerial employees and deposits payroll taxes monthly, the January 2020 payroll tax deposit is due.

February 28

Send Copy A of Form 1099-MISC with Form 1096 to the IRS. For those of you who have the W-2 and the 1099-MISC Kit, you can just follow the instructions provided. 

If you file these electronically, the due date is extended to April 2.

March 16

If you have non-ministerial employees and deposit payroll taxes monthly, the February 2020 payroll tax deposit is due. 

Never miss a deadline

We want this to be a seamless process for you. We know filing taxes and IRS deadlines can be so overwhelming, but it doesn’t have to be!

We created a full-year calendar of all the tax dates for you. As a gift to you, give us a call at 877-494-4655 and ask one of our team members for the complementary 2020 Tax Calendar. 

We want you to be free to do what you are called to do: love people and share Jesus Christ with them. We know administrative tasks can be a burden, and we want to come alongside and take that burden off your shoulders.

We offer many services to help with taxes and annual filings to the IRS. Click below to schedule a time with one of our specialists to talk about how our team at StartCHURCH can come alongside your ministry.

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