Clergy Financial Resources | Clergy Tax Net

10/21/2026

Pastors, extended 2025 return filed? 🗓️ Now is a smart time to look at 2026 before the year closes.

A few year-end moves to check:
✅ Housing allowance: Compare what you've actually spent on housing this year with what your church designated. Any allowance you can't exclude is taxable and is reported as "excess allowance" on your return.
✅ Retirement: The 2026 limit for 403(b) salary deferrals is $24,500, plus an $8,000 catch-up if you're 50 or older (more for ages 60–63). Changes usually run through church payroll, so talk with your treasurer soon.
✅ Giving: New for 2026, if you don't itemize you may deduct up to $1,000 of cash gifts to qualifying charities ($2,000 married filing jointly).
✅ Expenses: Turn in ministry expense receipts under your church's accountable plan before year-end.

Clergy Financial Resources serves clergy and churches with tax, payroll, bookkeeping and HR. Want a second set of eyes on your 2026 picture? Get started with a CFR tax advisor today: https://www.clergyfinancial.com/services/clergy-tax-preparation/get-started/ 🙏

10/19/2026

Educators Have New Options to Deduct 2026 Classroom Expenses – Did You Know?

If you work as a K–12 teacher, instructor, counselor, principal or aide for at least 900 hours during the school year at a qualifying school, you may be able to deduct qualifying unreimbursed classroom expenses on your tax return.

For 2026, eligible educators may deduct up to $350 of qualifying expenses as an above-the-line deduction without itemizing, or up to $700 for a married couple filing jointly if both qualify, with a limit of $350 each.

Additionally, a new itemized deduction is available beginning in 2026 for educator expenses, with no separate dollar cap. You must itemize deductions to claim this additional deduction. It is also available to interscholastic sports administrators and coaches who meet the K–12 school and 900-hour requirements, and may cover additional expenses.

Eligible educators may claim both deductions, as long as the expenses used to figure each deduction do not overlap. A tax professional can help you determine whether you qualify and which deduction strategy yields the greatest possible tax savings.

10/13/2026

https://mailchi.mp/clergyfinancial.com/are-your-church-books-ready-for-year-end

When bookkeeping falls to a busy volunteer or part-time staff member, things slip. Reconciliations fall behind, designated gifts get mixed into the general fund, and board reports arrive late or not at all. Clergy Financial Resources provides bookkeeping designed for churches and nonprofits: accurat...

10/12/2026

🗓️ Pastors: is your 2026 tax on track?

Unless you've been approved for an exemption (Form 4361), you pay Social Security as a self-employed person (SECA), and no SECA is withheld from your paycheck. That's why quarterly estimated payments matter. With one payment left for 2026, now is a good time for a quick check-up.

✅ The final 2026 estimated payment is due January 15, 2027.
✅ To avoid an underpayment penalty, you generally need to pay at least 90% of your 2026 tax or 100% of your 2025 tax (110% if your 2025 AGI was over $150,000).
✅ Behind? Ask your church to increase voluntary federal withholding for the rest of the year. Withholding counts as paid evenly through the year, so it can help close the gap.
✅ Remember: SECA applies to your housing allowance, too.

Questions about your 2026 numbers? Send us a message. Clergy Financial Resources has served clergy and churches since 1980, and we're happy to help. 🙏

Send a message to learn more

10/12/2026

October 15 Filing Extension Deadlines

Taxpayers who timely requested an extension to file their 2025 federal income tax returns generally must file by Thursday, October 15, 2026. The same deadline generally applies to calendar-year C corporations that received an extension to file their 2025 corporate returns (Form 1120).

In addition, U.S. persons with a financial interest in or signature authority over foreign financial accounts whose combined value exceeded $10,000 at any time during 2025, and who are required to file a Report of Foreign Bank and Financial Accounts (FBAR), generally must file by October 15, 2026. The FBAR extension is automatic; no extension request is necessary.

10/07/2026

Congress just passed the Clergy Act. So what does that mean for you? 🙏

If you're a minister, you may have seen the headlines about a bill that could change the retirement picture for clergy. The good news is that there's no need to panic or dust off any forms.

In our latest episode (under 5 minutes!), Josh Friesen breaks down where things stand and what's next, so you can feel informed instead of overwhelmed.

🎧 Listen here: https://clergyfinancial.substack.com/p/congress-passes-clergy-actwhats-next

We'd love to hear from you: What's your biggest question about retirement planning as a minister? Drop it in the comments and we'll work to answer it in a future episode. 👇

And if you know a pastor, chaplain, or ministry leader who should hear this, tag them or share this post!

10/05/2026

Up to $5,120 of the Adoption Tax Credit Is Refundable for 2026 – Did You Know?

The Adoption Tax Credit helps eligible families manage qualified costs such as adoption fees, travel, legal services and home studies. In recent years, the credit was nonrefundable: it could reduce a person's federal income tax, but any unused amount generally had to be carried forward.

Under rules that took effect in 2025, part of the credit is now refundable. For tax year 2026, up to $5,120 per eligible child may be refundable, even if the taxpayer owes no federal income tax. Any unused nonrefundable portion may be carried forward for up to five years, but a carryforward cannot become refundable in a later year.

The Adoption Tax Credit is subject to income limits and other restrictions, and the timing of a claim depends on the circumstances of the adoption. A tax professional can help determine whether you qualify and how much credit you may claim.

10/05/2026

Pastors and church leaders: now is the time to set up your 2027 housing allowance.

Your church has to designate the housing allowance IN ADVANCE, by official action such as a board or council vote recorded in the minutes, before the payments are made. A designation made after the fact can't be applied to income you've already received.

A quick refresher: the amount you can exclude from income tax is the lowest of these three:
✔️ The amount your church designates
✔️ What you actually spend on housing
✔️ The fair rental value of your home (furnished, plus utilities)

Put it on your church's agenda before December 31. Questions about how much to designate? Our team has helped clergy with this since 1980. Send us a message!

Call now to connect with business.

09/29/2026

Enhanced Tax Credit Can Help Cover 2026 Childcare Costs – Did You Know? (2/2)

If you pay for care for your child under 13 years of age, or for your spouse or other dependent who requires help with basic self-care, then you may qualify for a federal tax credit. The Child and Dependent Care Tax Credit (CDCTC) can help reduce your federal income tax based on care expenses that you pay in order to work or seek work.

The CDCTC is calculated as a percentage of eligible care expenses. As in the past, the credit is subject to phase-down ranges, meaning that the maximum credit amount may decrease based on a person's adjusted gross income (AGI). However, new rules that took effect this year have significantly increased the maximum credit amount for people with AGIs both below and within the phase-down ranges.

For example, a married couple filing a joint return with an AGI of $75,000-$150,000 may qualify for a credit of up to 35% of eligible care costs, up from 20% in 2025. Meanwhile, a single filer with an AGI of $15,000 or less may be entitled to a credit equaling 50% of qualifying expenses. Above $15,000, the rate gradually declines, reaching 35% once AGI exceeds $43,000. A tax professional can help you determine whether you qualify for the CDCTC, and if so, what percentage you may use to figure your credit amount.

09/22/2026

🎙️ New episode of Kingdom Impact 5 is live!

"Can Our Church Employees Volunteer at Our Church?"

It happens in nearly every church in America, usually on a Saturday, usually with coffee and donuts involved. An employee shows up on their day off to help set up chairs or run sound, and nobody thinks twice about it.

A brand new Department of Labor opinion letter just gave church leaders a reason to look at that a little closer, and it came from a place you'd never expect. In under 5 minutes, Josh Friesen breaks down what changed and the one question every church leader should ask before the next sign-up sheet goes around the room.

🎧 Listen now: https://clergyfinancial.substack.com/p/922f6a8e-2b75-4627-9fd9-7f2327583ef3