Office of the Christian Teacher

Wednesday September 9

Taxes and Housing Allowance

Don’t forget to enjoy when it snows

Todays topic is puzzling to some PCWs.

Bloom where you are planted

Question of the Day Today: One of your CUAA friends has posted some old college

photos of you on their FACEBOOK page. They are from your 21st birthday celebration which was not one of your proudest life events. You are worried someone from your Youth Group will see them. Your CUAA Friends say lighten up, and quit worrying. Should you tell your principal?

Tomorrow Since Health Care reform is stalled in congress, costs continue to rise. You become ill and needed emergency surgery one day before starting your new Call. Your health insurance took effect but since this prior condition occurred before your coverage and your parents stopped coverage on you the week before your surgery. (Thinking nothing would happen) you are responsible. The $60,000 surgery, hospital and rehab bill steals your breath. Your old CUAA Roommate says declare bankruptcy. What should you do?

Personal Finances--Taxes

What does it mean to be self-employed?

– Minister of Gospel– Housing Allowance deducted from Federal

Income Tax– Quarterly Payments (April, June, Sept., Jan.

15th)– Social Security Paid on all income (15.3%)– Penalties for underpayment

Which will impact you more FICA or Social Security? FICA paid

on Income after deductions

What are sample deductions?– Giving– Housing

Social Security is paid on your gross income at 15.3% rate>

FICA rate depends on adjusted income

Example of saving for Quarterly Taxes Salary = $30,000 15.3% = $4,500 Roughly $4,500 divided by 4 = $1,125 $1,125 divided by 6 pay periods = $187.50

per check Why would some chose to have it withheld? Why might some chose otherwise?

Other Taxes

Federal Income Tax Property Tax City Tax (Detroit) (1.0%) Sales Tax (Michigan 6%) Michigan State Tax

Which will

Determining Housing Allowance

Clergy and ministers may claim a “Housing Allowance

What types of things do you think qualify?

Items for Housing Allowance Rent or Mortgage Garage rental Down Payment, title fees Real Estate Taxes Property (Renters Insurance) Utilities Furnishings Repairs/Remodeling Lawn Care Maintenance Items (Cleaners, light bulbs, pest control) Home Owner (association) dues

How is my total compensation different from my salary? Salary Education Allowance Mile/Car Allowance (Usually Pastors) Medical Insurance Health Insurance (individual – Family) Disability Retirement Stipends (Coaching) Bonus (Christmas) Flexible Savings Plan (Church’s Plan)

Mileage Consideration

Even if you do not get a car allowance, you may deduct mileage accumulated in ministry.

You should place a .99 notebook in your car for ……………………

How should you track your housing?

Highlighters Develop a System This is important if you are audited.

(Chances are low) A system helps you track your money.

Should you complete your own tax return? Depends:

– Are you doing it now?– Do you enjoy working with figures?– Does your church have someone who

understands this and does it for others?– Treasurers handbook resource– Time– competency

Find the Article on PCW Indebtedness What trends exist? Why? Church workers are financially better then

the national average in……….? What message does the District send to

congregations if we cut the synodical subsidy?

Should stewardship be taught as an undergrad requirement at CUAA?

Future Trends in Ministry

Consolidations Congregations/Schools Endowment/Development Emphasis 24/7/365 Facility Usage A recruitment Plan Modernize & Clean Up – Outside Eyes School and Congregational Consultants

Become more Available and Common Technology Seen as Ministry Tool

Future- Will Urban Centers contain a Lutheran Presence? What keeps the LCMS from being a vital

component in urban ministry?

More Future Trends

Male Teachers Non Tenured Calls Admissions Counselors Multi Grade Classroom Effective Parent Communication

You had to be on fire if you are suffering from burnout! Burnout is: Disengagement Emotions Blunted Emotional Damage

Primary Affects Motivation

Drive Sense of

helplessness/hopelessness

Loss of motivation/Paranoia

Detachment/depression

Distress is:

Over Engagement

Emotions are over reactive

Physical Damage Primary

Affects Physical Energy

Loss of Energy/Fuel

Produces Panic, Anxiety disorder

Sense of urgency/hyperactivity

How are Church Workers Nurtured?

Lower Expectations Pray For them, Practice Forgiveness Encourage Self Care (Sleep, Exercise, Food) Modeling of Quality Skills Accountability Partner Support Outside the Church (Heathen Friends) Recognition, Salary, Sabbatical, Vacation, Day

Off, Appreciation of Family Grace Place and Other Agencies

What is the benefit if we care for workers?

Tomorrow

Read the Article “What Teachers hate about Parents” for tomorrow.