Church Tax Refunds May Be Available to Eligible Congregations
Church tax refunds may be available to some congregations that provide employee health insurance. Tax professional Tom Burbrink explains that eligibility depends on factors including the church’s insurance contributions, number of employees, and average annual wages.
- Eligible churches must have a group medical insurance plan and pay at least 50 percent of the premium.
- Churches must have fewer than 25 “full-time equivalent” employees and meet the stated average-wage requirement.
- Burbrink says the refund can be as much as 25 percent of the insurance premium paid by the church.
By Jennifer Taylor
Tom Burbrink believes tens of thousands of dollars in tax refunds are available to churches—maybe even yours!
Burbrink, a tax professional specializing in service to churches and ministers, has researched the issue in light of changes made by the Affordable Care Act. The act provides federal tax refunds to small employers, and many churches and church organizations are eligible even though they pay no income taxes.
Which Churches Qualify for the Tax Refund?
To qualify for the refund, a church must have a group medical insurance plan, must pay at least 50 percent of the premium, and must offer the plan to all full-time employees. Churches must also have fewer than 25 “full-time equivalent” employees and average annual wages (not including the senior minister) of less than $50,000.
“Many of our churches are eligible for this refund, and the law makes the credit available for the next several years,” Burbrink says. “The refund can be as much as 25 percent of the amount of the insurance premium paid by the church.”
Eligible churches may claim the credit for 2010 through 2013 and for any two years after that; however, the 2010 filing deadline was May 15, 2011.
To learn more about this and many other tax issues for churches, visit www.burbrink.com.
