Clergy Tax Organizer An Online Tax Preparation Guide

Transcription

1 a new generation of services for today s religious professional 2009 Clergy Tax Organizer An Online Tax Preparation Guide Clergy Financial Resources Version e

2 2009 Clergy Tax Organizer Welcome to the new 2009 Clergy Tax Organizer. The online organizer has been enhanced this year to include last year s information to reference year-to-year income and expenses, direct web input, guaranteed web security, and uploading file exchange. You will have two organizer formats to complete this year. The Clergy Tax Organizer and Web Client Organizer are designed to help you conveniently gather tax information needed to prepare your 2009 personal income tax return. We use these two comprehensive organizer formats to address the standard tax laws and the special tax laws designed for clergy. This is your assurance that important tax information will not be missed. Each year Clergy Financial Resources publishes a new Clergy Tax Organizer. We do this to provide you with better and faster service, but also to get you started with sound recordkeeping practices for the following year. In this organizer, we cover the most common clergy situations and address the questions that arise most often. There may be many variations in individual situations and you may choose to take a different approach in some areas. Due to the fact that federal laws and most state laws change somewhat each year, you should only use the current edition of this organizer. This Clergy Tax Organizer is designed to be used as a learning tool, a reference guide, and a source of helpful recordkeeping. Reading through it once quickly will give you a basic understanding of the issues involved for income tax preparation. Please provide accurate information to each question that applies to you and/or your spouse. Completing this organizer and the Web Client Organizer to the best of your ability will avoid missing any qualified deductions and credits. Your return will be prepared primarily from the data from both organizers. Please follow and complete the three steps listed below. 1) Print and complete this Clergy Tax Organizer; 2) Log-in to the Web Client Organizer and complete; 3) Submit the Web Client Organizer, Clergy Tax Organizer and all supporting documents. Step Clergy Tax Organizer Print and complete this organizer by hand. Attach the completed Clergy Tax Organizer and any additional supporting documentation to the Web Client Organizer. Step 2 - Complete the Web Client Organizer To access the Web Client Organizer, enter the following URL in the address bar or copy and paste this link into your browser s address line. You may also create a short-cut on your desk top for future reference. In addition, you are able to access this area through "my documents" link on the top of each page on our web site, To protect your privacy and provide additional security, the Web Client Organizer is also password protected. Your log in ID will be ed to you after registration. The password to open your personal Organizer is your SSN. Enter the password using only numbers. For example, if your Social Security number is you would enter We have provided certain information from your 2008 personal income tax return to help you complete the Organizer with minimal time and effort. Enter 2009 information on the personal Organizer screens provided. If any information does not apply to you or is incorrect, delete it or make the necessary corrections. -1-

3 Please answer all applicable questions and use the Client Notes screen to enter additional information not provided in the Organizer. The Client Notes screen is also available for any questions that you may have for our office. Throughout the tax organizers you will find columns with the heading "TSJ" or "STATE". TSJ Code State Code Enter "T" if the indicated item is for the taxpayer. Enter "S" if the indicated item is for the spouse. Enter "J" if the indicated item is joint. Use this area to identify the state, using a state postal abbreviation, if the indicated item did not occur in your resident state. Step 3 Submit all completed material and supporting documents The Web Client Organizer will be submitted to us automatically when completed. The Clergy Tax Organizer and other supporting documents must be attached to the Web Client Organizer. The following information must be received to complete your return: -Clergy Tax Organizer - Forms W-2 for wages - All Forms 1099 for interest, dividends, miscellaneous income, etc. - Brokerage statements showing investment transactions for stocks, bonds, etc. - Schedule K-1 from partnerships, S corporations, estates and trusts. - Statements supporting deductions for mortgage interest and taxes. - Settlement statements and other documentation regarding sale or purchase of real property and 2010 church budget and 2010 salary package - Any tax notices sent to you by the IRS or other taxing authority. - A copy of your tax return from last year, if not prepared by this office. You can attach and send these additional files with the Web Client Organizer to our office for retrieval. This is the most convenient and secure way to send information regarding the preparation of your tax return without having to mail or fax these documents to our office. You can attach the following types of files to your Organizer: Microsoft Money or Quicken tax exchange format (.txf), Microsoft Excel (.xls), Microsoft Word (.doc,.rtf), Adobe Reader (.pdf), image files (.jpg,.bmp,.tif,.png), and web pages (.html). -2-

4 TABLE OF CONTENTS Additional information/questions Adoption credit. Online Alimony paid... Online Alimony received... Online Annuity payments received... Online Automobile information Charitable... Online Clergy... 7 Medical... Online Rental... Online Secular business... Online Secular employee... 7 Local transportation deductible chart Child and dependent care expenses Online Charitable contributions... Online Clergy income... 5 Clergy housing / parsonage / manse expenses... 6 Clergy professional expenses... 8 Dependent information... Online Direct Deposit... Online Dividend income... Online Early withdrawal penalty... Online Education credit... Online Elements to prove business expenses chart Federal and state estimated payments... Online Honoraria... 5 Household employment tax... Online Installment sale / Contract for deed Online Interest income... Online Interest you paid... Online Investment expenses... Online IRA contributions Online IRA distributions Online Mailing address Medical and dental expenses Online Medical and dental deduction guide Miscellaneous income Online Miscellaneous deductions Online Moving expenses Online Non-cash contribution guide..... Online Pension distributions... Online Personal information... 4 Personal property tax paid... Online Projected income for Questions / Payment information Rent and royalty income and expenses... Online Residential Energy Credit. Online Roth IRA.. Online Sale of personal residence... Online Sale of stock, bond, and other securities... Online Secular business income and expenses... Online Secular wages... Online Secular - professional expenses... 9 Social security benefits received... Online State and local income tax refund... Online Student loan interest paid Online Summary Report Tax and interest deduction guide Taxes you paid... Online Unemployment compensation... Online

5 PERSONAL INFORMATION Taxpayer Spouse First name and middle initial Last name PRESENT MAILING ADDRESS Address Home telephone Apartment (T) Church/Office phone City (S) Church/Office phone State (T) Cell phone Zip code (S) Cell phone County Fax School district and number -4-

6 CLERGY INCOME Please attach all copies of Form W-2 or 1099-Misc. "T" = Taxpayer "S" = Spouse T/S Church/School A (Name and Address) T/S Church/School B (Name and Address) T/S Church/School C (Name and Address) T/S Church/School D (Name and Address) Compensation Source A Source B Source C Source D W-2 Box 1 W-2 Box 14 Base salary Housing: Housing allowance Parsonage, Manse allowance Appurtenance allowance Utility allowance Furnishing allowance Social Security allowance Auto allowance Non-accountable plans only Auto Reimbursements Professional allowance Non-accountable plans only Professional Reimbursements Other Other Honoraria Chaplain Other Other Professional Accountable Reimbursement Plan (PARP) 2009 PARP designation Amount received from PARP Amount rolled over to 2010 PARP NOTES -5-

7 CLERGY HOUSING / PARSONAGE / MANSE If you lived in multiple states, please duplicate this page for each state. This exclusion applies to only one home at the time, the one that is your personal residence. Do you live in your own home? yes no From to Do you live in a parsonage/manse? yes no From to Do you rent a home? yes no From to Did you take out a home equity loan this year? yes no Amount Does the church/school pay the parsonage/manse utilities? Designated fair rental value for the parsonage/manse. yes no Amount Did you receive any housing, parsonage, manse, appurtenances, or utilities allowance(s) in 2009? yes no If yes, what amounts were designated in 2009? Housing allowance Parsonage, Manse allowance Appurtenance allowance Utilities allowance Furnishing allowance Pension Housing / Parsonage / Manse Expenses (Include any expense you incurred to maintain and furnish a home. Do not include maid service, food, personal items or personal gifts.) Appliances Cleaning supplies Closing costs Down payment Furniture / Accessories Home equity loan payment House payment (PITI, Principal, Interest, Taxes, Insurance, Dues) Improvements / Remodeling Homeowners assoc. dues (If not included in house payment) Home Insurance (If not included in house payment) Renters Insurance Miscellaneous Maintenance / Repairs Rent paid Supplies Taxes (If not included in house payment) Telephone (Do not include long distance cost) Utilities / Garbage Yard maintenance / Equipment Other _ Other _ Other _ Total of all housing / parsonage / manse expenses Check here, if you have adequate records to support your expenses listed above. -6-

8 DETAIL OF AUTO EXPENSES What type of auto reimbursement plan does your church/school have? T Accountable Non-accountable S Accountable Non-accountable If you have selected the accountable reimbursement plan, please indicate the rate per mile and the total reimbursement received. Federal reimbursement rate.55 cents Church/School A - Rate per mile Auto reimbursement Church/School B - Rate per mile Auto reimbursement Church/School C - Rate per mile Auto reimbursement Church/School D - Rate per mile Auto reimbursement Did you receive an auto allowance in 2009? yes no If yes, please indicate amount on page 4. Please complete this section for all vehicles. Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Year Vehicle description Vehicle purchase price or lease price Date purchased or leased (mm/dd//yy) Date first used in the ministry or business Usage code A-Ministry related B-Honoraria C-Rental D-Business E-Personal Total miles driven during 2009 Total commuting miles Ministry mileage Honoraria mileage Ministry parking, fees and tolls Vehicle rentals used in ministry Business mileage Business parking, fees and tolls Vehicle rentals used in business Rental mileage Please complete this section only if you lease or use the actual expense method. Lease payment Lease cap reduction payment Gas, oil, lubrication, etc. Repairs, tires, supplies, etc. Insurance, license, tabs Interest and taxes -7-

9 DETAIL OF CLERGY PROFESSIONAL EXPENSES If you lived in multiple states, please duplicate this page for each state. What type of professional reimbursement plan does your church/school have? T Accountable Non-accountable S Accountable Non-accountable If you have selected the accountable reimbursement plan, please indicate the reimbursement received. Church/School A - professional reimbursement Church/School B - professional reimbursement Church/School C - professional reimbursement Church/School D - professional reimbursement Did you receive a professional allowance in 2009? yes no If yes, please indicate amount on page 4. Please complete for all unreimbursed clergy professional expense. Taxpayer Spouse Advertising Bank charges (ministry account only) Clothing (not adaptable to general wear) Conventions Ministry / Professional Dues Education / Seminars Liability / Malpractice Insurance Laundry / Cleaning Legal - Professional Services Lodging Office expenses (postage, stationary, etc.) Office / Church supplies Professional related gifts ($25 limit per person) Religious materials Repairs Rent on business equipment / Property Subscriptions / Publication / Books Telephone Ministry long distance Travel (airplane, train fares, etc.) Wages / Fees paid (evangelists, speaker, etc.) Meal / Entertainment Other Miscellaneous expenses relating to honoraria income Office Equipment Cost % Used in the Ministry Date Purchased First call clergy only - Professional library value as of start date Check here, if you have adequate records to support your expenses listed above. -8-

10 SECULAR PROFESSIONAL EXPENSE See page 7-8 for clergy expenses Books / Publications Supplies for job Education / Seminars Tools / Equipment Job seeking expenses Union / Professional Dues Mileage - include details on page 6 Educator Expenses Required uniforms / shoes Other Business Subscriptions Other Other Other -9-

11 2010 PROJECTED INCOME WORKSHEET "T" = Taxpayer "S" = Spouse T/S Source A (Name and Address) T/S Source B (Name and Address) T/S Source C (Name and Address) T/S Source D (Name and Address) Compensation Source A Source B Source C Source D Base salary Housing: Housing allowance Parsonage / Manse allowance Appurtenance allowance Utility allowance Furnishing allowance Social Security allowance Auto allowance Non-accountable plans only Professional allowance Non-accountable plans only Will your auto expenses be reimbursed? Will your professional expenses be reimbursed? Other Honoraria Chaplain T/S Secular T/S Secular T/S Secular T/S Pension T/S Pension T/S Pension T/S Social Security T/S Social Security T/S Other Payer Amount Please calculate my 2010 federal and state estimated payments or withholding. Do not calculate my 2010 federal / state estimated payments or withholding. Do you expect a considerable change in your 2010 income, deductions, or withholdi Do you expect a change in the number of dependents claimed for 2010? Number of qualified dependents for 2010 Please explain any differences on page 12. ng? yes no yes no -10-

12 QUESTIONS/PAYMENT INFORMATION Please check the appropriate box and include all pertinent detail on page 12. This specially designed tax organizer is provided to assist you in gathering the information needed to prepare your current income tax return. We suggest that you review the entire organizer and answer all the questions that apply to you and/or your spouse. Your return will be prepared primarily from this data. No part of this organizer may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system. All clients will have 10 days to pay their account in full. For your convenience, if more than 10 days is needed, you may apply the balance to your Visa or MasterCard. 10 Day Account Credit Card Visa MasterCard Card Holder's Name: (as it appears on the card) Card Number: Expiration Date: 3 Digit Code Please read the following statement and sign the acknowledgement: I (we) have submitted this information for the sole purpose of preparing my (our) tax return and related items and each item can be substantiated by receipts, cancelled checks, or other documents. This information is true, correct, and complete to the best of my (our) knowledge. Taxpayer's signature Date Spouse's signature Date -11-

13 ADDITIONAL INFORMATION / QUESTIONS: -12-

14 MEDICAL AND DENTAL DEDUCTION GUIDE Medical and Dental Expenses Checklist You can include: You cannot include: Bandages Birth control pills prescribed by your doctor Capital expenses for equipment or improvements to your home needed for medical care Certain fertility enhancement procedures Certain weight-loss expenses for obesity Diagnostic devices Expenses of an organ donor Eye surgery to promote the correct function of the eye Guide dogs or other animals aiding the blind, deaf, and disabled Hospital services fees (lab work, therapy, nursing services, surgery, etc.) Lead-based paint removal Legal abortion Legal operation to prevent having children such as a vasectomy Long-term care contracts, qualified Meals and lodging provided by a hospital during medical treatment Medical and hospital insurance premiums Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners) Oxygen equipment and oxygen Part of life-care fee paid to retirement home designated for medical care Prescription medicines (prescribed by a doctor) and insulin Psychiatric and psychological treatment Social Security tax, Medicare tax, FUTA, and state employment tax for worker providing medical care (see Wages for Nursing service, below) Special items (artificial limbs, false teeth, eyeglasses, contact lenses, hearing aids, crutches, wheelchair, etc.) Special education for mentally or physically disabled persons Stop-smoking programs Transportation for needed medical care Treatment at a drug or alcohol center (includes meals and lodging provided by the center) Wages for nursing services Baby sitting and childcare Bottled water Contributions to Archer MSAs Diaper service Expenses for your general health (even if following your doctor s advice) such as --Heath club dues --Household help (even if recommended by a doctor) --Social activities, such as dancing or swimming lessons --Trip for general health improvement Flexible spending account reimbursements for medical expenses (if contributions were on a pretax basis) Funeral, burial, or cremation expenses Health savings account payments for medical expenses Illegal operation or treatment Life insurance or income protection policies or policies providing payment for loss of life, limb, sight, etc. Maternity clothes Medical insurance included in a car insurance policy covering all persons injured in or by your car Medicine you buy without a prescription Nursing care for a healthy baby Prescription drugs you brought in (or ordered shipped) from another country, in most cases Nutritional supplements, vitamins, herbal supplements, natural medicines, etc., unless recommended by a medical practitioner as a treatment for a specific medical condition diagnosed by a physician Surgery for purely cosmetic reasons Toothpaste, toiletries, cosmetics, etc. Teeth whitening Weight-loss expenses not for the treatment of obesity or other disease -13-

15 TAX AND INTEREST DEDUCTION GUIDE NAL INFORMAT Sales Tax Deduction Taxpayers who itemize deductions will have a choice of claiming a state and local tax deduction for either sales or income taxes on their 2009 returns. The IRS will provide optional tables for use in determining the deduction amount, relieving taxpayers of the need to save receipts throughout the year. Sales taxes paid on motor vehicles and boats may be added to the table amount, but only up to the amount paid at the general sales tax rate. Tax Guide Income Taxes Page 10 General Sales Taxes Page 10 Real Estate Taxes Page 10 Personal Property Taxes Page 10 Other Taxes Page 10 Fees and Charges Page 10 Interest Guide Interest Page 10 You Can Deduct State and local income taxes. Foreign income taxes. Employee contributions to state funds listed under Contributions to state benefit funds. One-half of self-employment tax paid. State and local general sales taxes. State and local real estate taxes. Foreign real estate taxes. Tenant s share of real estate taxes paid by cooperative housing corporation. State and local personal property taxes. Taxes that are expenses of your trade or business or of producing income. Taxes on property producing rent or royalty income. Occupational taxes. Fees and charges that are expenses of your trade or business or of producing income. You Can Deduct Deductible student loan interest Deductible home mortgage interest and points reported on Form 1098 Deductible home mortgage interest not reported on Form 1098 Deductible points not reported on Form 1098 Deductible investment interest (other than interest incurred to produce rents or royalties) Deductible business interest (non-farm) Deductible farm business interest Deductible interest incurred to produce rents or royalties You Cannot Deduct Federal income taxes. Employee contributions to private or voluntary disability plans. State and local general sales taxes (if you choose to deduct state and local income taxes). State and local income taxes (if you choose to deduct state and local general sales taxes). Taxes for local benefits (with exceptions). Trash and garbage pickup fees (with exceptions). Rent increase due to higher real estate taxes. Homeowners association charges. Import duties. State and local sales and use taxes. Federal excise taxes, such as telephone taxes Per capita taxes. Fees and charges that are not expenses of your trade or business or of producing income, such as fees for driver s licenses, car inspections, parking, or charges for water bills Fines and penalties. You Cannot Deduct Personal interest is not deductible. Personal interest is any interest that is not home mortgage interest, investment interest, business interest or other deductible interest. It includes the following items. Interest on car loans (unless you use the car for business). Interest on federal, state, or local income tax. Finance charges on credit cards, retail installment contracts, and revolving charge accounts incurred for personal expenses. Late payment charges by a public utility. Loan fees. Credit investigation fees. FHA mortgage insurance premiums and VA funding fees. Interest to purchase or carry tax-exempt securities. -14-

16 WHEN ARE LOCAL TRANSPORTATION EXPENSES DEDUCTIBLE? IO Use this chart in determining deductible ministry / business mileage NAL INFORMAT FORMAT -15-

17 ADTIO ELEMENTS TO PROVE CERTAIN BUSINESS EXPENSES Ministry / business record keeping guide NAL -16-

18 NON-CASH CONTRIBUTION GUIDE Use this chart below in determining the minimum value of donated personal property CLOTHING EQUIPMENT WOMEN MEN KIDS INFANTS INFANTS SPORTS Belts $2-8 $2-8 Baby carrier $5-20 Backpack (metal) $15-25 Bathrobes $3-14 Baby swing $15-20 Bicycle $ Blouses $5-15 Bibs/Socks $1-2 Exercise bike $30-80 Boots (leather) $8-25 $5-25 $4-11 Blankets $6-12 Fishing rod $5-15 Coats $10-90 Caps/Mittens $1-3 Hockey skates $15-45 Dresses $10-40 $5-12 Car seat $20-35 Nordic Track $ Gloves (Caps) $2-5 $2-5 $2-3 Changing pad $2-4 Roller Blades $10-25 Handbags $3-15 Crib w/mattress $ Golf clubs $ Hats $3-10 Diaper Bag $5-8 Skis $30-75 Jackets $10-25 $8-45 $5-15 High Chair $10-20 Tennis racket $5-15 Leotards $2-5 Playpen $8-34 Treadmill $ Overcoats $10-75 COMPUTERS Ski boots $10-30 Pants $5-20 $8-23 $5-10 $3-6 Laptop Pads $15-35 Hockey,Football Raincoats $5-15 Monitors $ Skateboard $15-35 Scarves $2-8 PC or Mac Athletic shoes $8-14 Shoes $5-14 $5-20 $5-10 $4-7 Printers: Dot $ Helmet $6-15 Shorts $4-12 $5-10 $3-6 Printers: Ink jet $ Balls $4-10 Shirts $5-10 $3-8 $3-6 Printers: Laser Gloves $20-50 Skirts $5-16 MISC Bowling ball $4-5 Sleepwear $4-6 Camera $5-20 Sleeping bag $7-10 Snowsuits $5-19 Candle holder $2-4 Suits $12-96 $20-96 Carry-on bag $5-15 Sweaters $5-20 $7-20 $4-10 $5-8 Eyeglasses $5-10 Sweatshirts/Pants $5-10 $5-10 $3-7 Lawn mower $20-75 Ties $2-9 Suitcase $10-20 T-Shirts $2-5 Vase $2-8 Undergarment $2-5 $1-3 T-writer: manual $8-20 Stroller $20-35 T-writer: electric $25-80 HOME FURNISHINGS LINENS FURNITURE ELECTRIC APPLICANCES Bath towels $2-4 Bookshelf $ A/C $ Answer mach $5-8 Bedspreads $5-25 Box spring $10-25 Blender $5-10 Mixer (hand) $3-6 Blankets $5-15 Office chair $15-45 Clock radio $4-9 Tape/Radio $5-12 Curtains $2-15 Rocking chair $50-80 Coffee maker $5-12 TV - color $ Drapes $10-40 Upholstered chair $ Dishwasher $ TV - B&W $20-40 Fabric per yd $$1-4 Chest of drawers $ Dryer $ Pillows $2-5 Coffee table $ Hair dryer $4-6 Sheet Sets $3-10 Desk $ Iron $5-10 Table Cloth $5-20 Kitchen set $ Microwave $25-85 Throw rugs $5-16 Dresser w/mirror $ Stereo $10-50 KITCHEN End table $15-75 Fridge $ Coffee mugs $1-2 Headboard - Full $15-90 Sewing machine $25-50 Dinner plates $1-2 Headboard - Twin $15-70 Stove $ Glassware $1-3 Lamp - desk $10-25 Phone $5-10 Pots & pans $3-5 Lamp - floor $15-35 Toaster $4-15 Teapot $3-5 Mattress-Full $25-85 Toaster oven $5-20 BOOKS, MUSIC, TOYS Mattress-Twin $15-60 Vacuum $15-70 Games $2-5 Recliner $ Wash machine $ Cassettes $1-2 Sleeper sofa $ CD's $2-5 Sofa $ Encyclopedia set $10-40 Wardrobe $30-90 The IRS (Internal Revenue Service) allows deductions of fair market Hardcover books $2-6 Wood trunk $15-40 valued items that have been donated to charity. The Salvation Army and Paperback books the Goodwill organizations have determined suggested prices for items in $1-3 China cabinet $ good condition. For claims pertaining to deductions of non-cash Puzzles $1-3 Buffet $25-90 contributions, the IRS requires proof of donation and documentation in Stuffed animals $2-6 Mini blinds $5-8 support of an item's value. Fair market value is determined by the price Record albums $1-2 Picture frames $2-20 obtained by the sale of an item at a garage or thrift store. This chart is Cooking/Art books $2-8 designed only as a guide and does not determine the actual value of your Video games $2-4 item. Dolls $2-6 Computer Software $

19 2009 SUMMARY REPORT Please provide a list for all forms/documents submitted with your 2009 Clergy Tax Organizer Online. Form T/S/J Description -18-