An Accountable Reimbursement Plan is a policy adopted by the Church that defines the terms, conditions, and tax rules related to tax deductible ministry-related expenses that are incurred by its employees. As with most things established by the IRS, there are specific requirements that must be met.
Because most Pastors have a housing allowance that is considered non-taxable income for federal income tax purposes, in the absence of an Accountable Reimbursement Plan, their ability to deduct allowable business expenses on their federal income tax return is further impacted by IRS regulations.
How will the 2018 Tax Cuts and Jobs Act affect you? Use this form to calculate your accountable plan!
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