2020 IRS Standard Mileage

On Dec. 31, 2019, the IRS announced the following changes to the standard mileage rates. Beginning Jan. 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 57.5 cents per mile for business miles driven, down from 58 cents for 2019
  • 17 cents per mile driven for medical or moving purposes, down from 20 cents for 2019
  • 14 cents per mile driven in service of charitable organizations

Congress repeals onerous “parking tax”

The government funding legislation passed by the U.S. House of Representatives on Dec. 17 and Senate on Dec. 19 includes repeal of Internal Revenue Code Section 512(a)(7), commonly referred to as the “parking tax.” The President signed the legislation into law on Dec. 20.

The provision, enacted as part of the 2017 Tax Cuts and Jobs Act, required tax-exempt organizations to include in unrelated business income the amounts they pay or incur on qualified transportation fringe benefits. The imputed taxable income from the provision resulted in many organizations incurring unrelated business income tax (UBIT) liabilities for the first time. The repeal is retroactive to the original date of enactment. As a result, organizations are entitled to a refund of taxes paid since the provision’s original effective date of Jan. 1, 2018. It is possible the IRS may develop a process for claiming the refunds. We will keep you posted of any updates.

Now’s the time to designate housing allowances

From the Board of Pensions’ “Tax Guide for Ministers”

“The most important tax benefit available to ministers who own or rent their homes is the housing allowance exclusion. Ministers who own or rent their home do not pay federal income taxes on the amount of their compensation that their employing church designates in advance as a housing allowance. Ministers should be sure that the designation of a housing allowance for the next year is on the agenda of the church board before first pay is issued for that year. Housing allowance designation cannot be made retroactively. The designation should be an official action and duly recorded in the minutes of the meeting. Also, the housing allowance designation must be done every year, regardless if the amount of the minister’s housing allowance changes or not.”

For more on the housing allowance or other minister tax questions, please refer to “Tax Guide for Ministers,” available in the Quick Links section at the Board of Pensions’ Benefits Connect website.

2020 Per Capita

The 2020 Per Capita is $30 per member. The 2020 Per Capita was approved at the August Presbytery meeting. It is a 50 cent increase from the 2019 rate. The increase in the total rate was in response to an increase in the General Assembly rate for 2019 and 2020 to $8.95 – up $1.22, and an increase in the Synod of the Trinity’s Per Capita, $2.40 for 2020 – up 10 cents. Therefore, with the total rate at $30, the Presbytery of West Virginia will keep $18.65, sending $8.95 and $2.40 to the General Assembly and Synod of the Trinity, respectively.

2020 Shared Mission Pledge Request

Hopefully, all our churches have received a 2020 Shared Mission pledge request and Per Capita notice. These letters were mailed to the treasurer, Clerk of Session, and pastoral leader of each church. Please return the pledge card to the Presbytery office at your earliest convenience. We encourage each Session to thoughtfully consider our request. The information provided when a church returns their pledge card, no matter the response, is essential to our effective management of the presbytery’s financial resources, so we urge treasurers, Clerks of Session, and pastoral leaders to make sure that your church has returned their pledge card to this office by January 31, 2020. If you have any questions about mission pledge, Per Capita, or other benevolences, please let us know (304-744-7634, treasurer@wvpresbytery.org).

2019 Year-end Benevolence Processing

As the year comes to an end, I want to encourage you to remit any amount remaining in your church’s Shared Mission pledge, Per Capita, or other benevolence payments for 2019. The General Assembly is allowing us a little extra time to submit payments for this fiscal year, so please, forward all remaining 2019 contributions to the Presbytery office by Friday, January 17, 2020 and those contributions will be included in 2019 records.

Changes to IRS Form W-4

The Internal Revenue Service (IRS) is proposing changes to the Form W-4. Changes to the long standard form were necessitated by the approval of the 2017 Tax Cuts and Jobs Act. A draft version of the new Form W-4 has been released by the IRS with plans to release a final version sometime next month. Employers will need to use the new Form W-4 for all new employees and for any current employees who wish to change their withholdings.  For more information and to preview the draft W-4, click here.