WE ARE NOT CURRENTLY ACCEPTING NEW CLIENTS
We also cannot offer free tax consultations, however this
resource page should answer many of your questions.
This page is dedicated to Youth With A Mission (YWAM) staff and members. However, the resources here should be helpful to any missionary who receives a 1099-NEC from a church or missionary base and/or other financial support.
Training
The resources on this page are free of charge and aim to give self-employed missionaries a solid understanding of tax liability and compliance as independent contractors who raise their own support to serve on the mission field. The links we provide are not sponsored. Please see our Legal Disclaimer.
Tax Training Video
Business Resources
Business Records Workbook (Google Sheets). File > Make a copy (to save to your own Google Drive) OR File > Download (to download a copy of the workbook)
Finance Software: Organize all your finances and budget with our most recommended software: YNAB (You Need A Budget). Note: This link is part of a referral program. When you use this link to subscribe, you will get a free month of YNAB, and so will we!
For a step-by-step guide to setting up the system, we recommend Nick True with MappedOutMoney: YNAB For Beginners – Updated Start Guide (2022) – YouTube.
Vehicle Expenses and Mileage Tracking. You can use the standard mileage deduction or actual expenses to write-off the business use of your vehicle. Regardless of which method you use, you must track your miles.
- 2024 Standard Mileage Rates: 67 cents per mile for every business mile driven, 14 cents per mile for charity, and 21 cents per mile for medical.
- Actual Expenses: If your vehicle’s actual expenses are higher, you can choose to write off the business portion of your actual costs for gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments). This method uses the business percent use of your vehicle, determined by dividing the business miles by the total miles driven during the year.
We recommend MileIQ to track your miles and to protect your car and truck expense deduction. Between driving students and staff and speakers around or running errands for your base, this subscription will more than pay for itself. https://www.mileiq.com/
Tax Payments and Refunds
Estimated Tax Payments. If you owed more than $1,000 in taxes on your 2024 tax return, then you are required to pay your estimated 2025 taxes during the year. Be sure to keep a thorough record of your estimated tax payments. Estimated taxes | irs.gov
1st payment …………….. April 15, 2025
2nd payment ……………. June 16, 2025
3rd payment …………….. Sept. 15, 2025
4th payment …………….. Jan. 15, 2026
Pay Your Taxes Online: Whether you’re paying estimated taxes (in advance) or making a payment on your return (after it’s filed), we recommend paying the tax agencies directly rather than going through a third party.
- Internal Revenue Service (IRS, Federal Taxes, United States Treasury): https://www.irs.gov/payments
- Franchise Tax Board (FTB, California state taxes): https://www.ftb.ca.gov/pay/
Set up a Payment Plan: If you have a balance due on your federal return and need to make payments over time, you can apply for an Online Payment Agreement through the IRS website: https://www.irs.gov/payments/online-payment-agreement-application. Choose “Apply/Revise as Individual.” We recommend paying off balances within a year if possible (divide your balance due by 12 for “amount you can pay”). Note: If you have already set up an account with the IRS website, it may take 2-3 weeks for an e-filed return to appear in your portal.
Check Refund Status: If you call us about the status of your federal refund, we will look it up on this site. If you want to save yourself a phone call: https://www.irs.gov/refunds and click on “Check My Refund Status.” You will need information from your tax return to verify your request.
Relevant Tax Topics for Missionaries
Foreign Tax Credit. If you or your spouse must pay taxes to a foreign country, you may be eligible for a credit against your personal income taxes (not self-employment taxes). The credit can be carried forward for up to 10 years if you do not owe personal income taxes. Foreign Tax Credit | Internal Revenue Service (irs.gov)
Foreign Earned Income Exclusion. If you meet the significant presence test while working in a foreign country (no more than 30 days spent in the US during the year), you may be eligible to exclude income you earned while working in a foreign country from your taxable income. Key: For your income to be “foreign earned,” your work must be in and for the benefit of a foreign country. The person(s) or company(ies) that pay you to work there do not have to be foreign for your income to be excluded. Learn more:
Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad | irs.gov
Personal Resources
Social Security Card: Order a copy of your social security card by setting up an account with the Social Security Administration https://www.ssa.gov/myaccount/
Health Insurance: Did you know self-employed people can deduct up to 100% of the health insurance premiums they paid during the year? It’s a personal expense that can “adjust” your total income and lower your Adjusted Gross Income (AGI). Note: If your income is less than your standard deduction, this adjustment cannot further lower your taxes. Suggested providers:
- Healthcare Programs | Christian Healthcare Ministries (chministries.org)
- Covered California – Health for California Insurance Center
Term Life Insurance: If you’re married with or without children, please take time to set up a term life insurance policy. Get Free Term Life Insurance Quotes – Dave Ramsey (ramseysolutions.com) Note: Do not purchase a whole life insurance policy. It’s a terrible financial product.
Roth IRA: The younger you are, the more you can take advantage of the time value of money. You (and your spouse, if applicable) can invest up to $7,000 each in 2024 and 2025. If you start at age 25, you could have over $1 million in the bank to draw when you’re 65 – tax-free! Roth IRA Calculator
Tax Help Referral
Sequoia Business Solutions is not currently accepting new tax clients. We’ve been referring inquiries to a CPA we’ve worked with for several years on non-profit tax returns:
Alan Wingate, CPA
https://alanwingatecpa.com/
About
Bethany Roseman completed her Discipleship Training School (DTS) with YWAM Denver and outreach phase in Thailand in 2005. She completed a bachelor’s degree in business management in 2016 and a master’s in business administration (MBA) in 2024. She’s been a certified tax preparer (CTEC No. A300518) since 2018.
In the summer of 2016, Bethany formed Sequoia Business Solutions to consult small business owners in management, bookkeeping, accounting, and tax preparation and now serves many businesses, including several nonprofits. She’s also served as the Treasurer of the Board at YWAM Yosemite since June 2017. Serving missionaries is one of Bethany’s chief passions, and she thoroughly enjoys working with them on their technical, financial, and tax compliance needs.
Coming Soon!
We hope to launch an online course in finance management for missionaries during the summer of 2025. The course will specifically be for missionaries based in the United States who work as independent contractors.
Page Last Updated on February 21, 2025