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Rachel H Bailey, EA

Professional Care in a TAXing Situation

Tax Preparation Service

 

Specializing in Ministers' Taxes

 

    Ministers taxes are undoubtably one of the most complicated tax situations ever created.  They are dual status with the IRS, which means they are employees, but for Social Security Purposes are considered self employed.  This in itself has created havoc for churches and ministers.  There are different deductions that are subject to FIca tax, but exempt from Federal.  Many claim a Housing Allowance which in the past was beneficial because there was a dual benefit.    But with the tax reform last year, many ministers found themselves owing more taxes than before and much of it was the result of the Schedule A Itemized deductions being either eliminated altogether or the caps being so high the deduction was unatainable.  Of course the Standard Deduction increased and so with many it was helpful in reducing federal tax but did nothing to help with the SE (self employment) tax which included housing allowance. Prior, if you owned your own home, you were able to offset income with many of the home expenses and ministerial expense on the Schedule A and the 2106.  

 

    The reimbursment plan has become a much better way of reducing a minister's tax burden.  It not only reduces federal, but also the SE tax.  It actually allows the minister to invest in retirement plans with the money saved from the SE tax -- a much better investment than the government Social Security plan.   It can also reduce the taxable income of your salary which reduces the federal income tax.  If your church is not already using this method, I can help the church work through the process of using this plan.

 

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Small Businesses

Personal

S Corporations 

Partnerships

Estates

Taxes have been my passion for the last 40 years.  I enjoy the challenge of finding the available deductions that will allow you the greatest tax savings. My belief is "pay your share" but only your share.

 

Included with your tax preparation, I am available throughout the year to assist with any correspondence you might receive, questions concerning your business moves, investment and tax consequences, or any questions that might arise that could affect your tax situation.  If you are my client, I do not charge for phone calls or emails and answers to your questions throughout the year.  It is important to me for our relationship to be of the nature that you have a friend that cares about your tax needs all year and not just on April 15th.

 

I am familiar with multiple states and currently have clients in many states.  

 

 


 

 

Contact info

 

   rachel@baileybusinessgroup.com

   cell      # 618-315-7050

   office     618-548-3566

 

    309A South Broadway

    Salem, IL 62881