As March winds down and the April 15 tax deadline looms, you’re likely knee-deep in sermon prep, pastoral care, and—oh yes—tax season. For clergy, filing taxes isn’t just a matter of plugging numbers into a form. Your unique dual tax status (employee for income tax, self-employed for Social Security and Medicare) and benefits like the housing allowance add layers of complexity.
At Clergy Tax Advisors, we’ve spent years helping ministers navigate these waters with confidence, and we’re here to ensure you don’t miss a beat before the deadline. Here’s your last-minute clergy tax checklist for 2025—because proactive planning shouldn’t stop when the clock is ticking.
1. Verify Your Housing Allowance Designation
Your housing allowance is one of the biggest tax advantages you have as a clergy member, exempting a portion of your income from federal income tax. But it’s not automatic. Double-check that your church designated it in writing before the tax year began (or retroactively, if allowed). Pull out that resolution or board meeting minutes and confirm the amount matches what you spent on housing—rent, mortgage, utilities, repairs, even furnishings. If it’s not documented, you risk losing the exclusion. Our year-round clergy tax planning services can help you set this up seamlessly for next year, but for now, ensure 2024’s paperwork is airtight.
2. Reconcile Your Mileage and Ministry Expenses
Did you drive to visit a shut-in, attend a denominational meeting, or pick up supplies for VBS? Those miles add up, and as a self-employed taxpayer for Social Security purposes, you can deduct them at the 2025 IRS rate (check irs.gov for the latest figure). Grab your mileage log—whether it’s an app, a notebook, or a spreadsheet—and tally it up. Same goes for unreimbursed ministry expenses like books or office supplies. If your church has an accountable reimbursement plan, confirm those receipts are submitted. A quick review now prevents headaches later.
3. Double-Check Form W-2 and Income Reporting
Your W-2 from the church should exclude your housing allowance from Box 1 (wages), but include it in Box 14 with a note like “Housing Allowance: $X.” If it’s listed incorrectly, contact your treasurer ASAP to amend it. Also, ensure any love offerings, bonuses, or honoraria from weddings and funerals are accounted for—those are taxable unless explicitly designated as gifts. Missing income is a red flag for the IRS, and we’ve seen it trip up even the most diligent ministers.
4. Calculate Self-Employment Tax Correctly
Unlike typical employees, you pay the full 15.3% self-employment tax (Social Security and Medicare) on your salary plus housing allowance. Use Form 1040 Schedule SE, and don’t skip the clergy-specific adjustments (e.g., subtracting housing from certain calculations). If you opted out of Social Security via Form 4361, confirm it’s on file with the IRS—otherwise, you’re still liable. Our team at Clergy Tax Advisors can run these numbers for you year-round, but for now, triple-check your math.
5. Gather Charitable Contribution Records
Your tithes, offerings, and donations to missions are deductible if you itemize, but you need receipts or bank records to prove it. The IRS is strict about substantiation—canceled checks, thank-you letters from charities, or payroll deductions all count. If you’ve advised your congregation on giving, you know the drill; apply it to yourself before filing.
6. Review Estimated Tax Payments
If you didn’t pay enough in quarterly estimated taxes for 2024 (deadlines were April 15, June 15, September 15, and January 15), you might owe a penalty. Pull your Form 1040-ES stubs and see if they cover 90% of this year’s tax or 100% of last year’s. There’s still time to adjust withholdings or make a payment to offset 2025’s Q1—part of the proactive approach we champion.
Why This Matters Now
Tax season doesn’t have to be a scramble. With Clergy Tax Advisors, year-round planning turns these last-minute checks into a breeze. But even if you’re flying solo this year, taking an hour to review these items can save you from audits, penalties, or missed deductions. You’ve got enough on your plate serving your flock—let this checklist lighten the load. Ready to make 2025 the year you get ahead? Our tailored clergy tax services are just a click away at clergytaxadvisors.com/year-round-clergy-tax-planning/. Let’s finish 2024 strong together.