Your client a pastor has not filed tax returns for the following years. He is...

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Accounting

Your client a pastor has not filed tax returns for the following years. He is married. There combined income is follows:

Wife Salary, Pastor Salary, Parsonage Allowance:

2014: 25,000 26,000 9,500

2015 26,000 30,000 12,000

2016 32,000 35,000 18,000

2017 35,000 38,500 24,000

Pastor built his own home in 2015 and there was no mortgage on the house. Wife works as a teacher in HISD and income tax withheld from her was 15% of salary. Income tax withheld from Pastors salary was 20 % of his salary. Help them. Required: File these tax returns. Read IRS publication on Pastor/Clergy. Pay close attention to Parsonage Allowance. For 2016 and 2017, prepare tax return two ways (1) Pastor is in Social Security System (2) Pastor is not in Social Security System.

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