Reimbursing ministry-related
expenses can add up to huge savings for pastors. To best manage them, create an
accountable expense reimbursement plan that outlines what is eligible for
reimbursement, the substantiation required, and when the expense must be
substantiated. Here are three tips for complying with a good accountable
expense reimbursement plan:
- Only submit items that constitute a church business expense. Not everything qualifies as a business expense.
- Substantiate the expenses submitted to the church. The details are important. Go beyond providing a receipt. Remember the 5 W’s: why does the expense qualify, what expenses were incurred, when were the expenses incurred, where were the expenses incurred, and who was involved.
- Submit the expenses for reimbursement in a timely fashion. For the sake of clarity, make expense report thorough and timely.
Remember, reimbursements under an accountable plan always
save pastors more money than Schedule A deductions. For more on how pastors can
leverage the tax law to save money, tune in to the conversation here: https://ecfa.podbean.com/e/5-tax-saving-tips/
