The International Support Goal Worksheet does not include Federal Income Tax for the reason that most International Missionaries qualify for Foreign Earned Income Exclusion (Form 2555). In most cases, US citizens living in foreign lands qualify for this exclusion once they have lived outside of the US for 330 days (out of one year).
This bonus exists so that first year missionaries and those who may not qualify can increase their income to meet potential tax obligations.
First year missionaries and those who don't qualify for the Foreign Earned Income Exclusion. Individual missionaries need to consult qualified tax advisors to understand this.
While the missionary is completing their initial Support Goal Worksheet, they need to submit a written request for the FITA bonus.
A settling-in bonus is intended for missionaries when they report to their new assignment. It allows them to pay for extra personal expenses that would normally be considered "personal" or salary items. Things like:
The missionary may seek additional funds for Settling-in bonus through a written request and explanation to International@gcmweb.org. As always, approval depends on funds being available in the MTD account, as well as judgment of MR and the local supervisor.
Settling-Bonuses are the same as extra income. Therefore, they are fully taxable. MR can assist in estimating the taxes due and add them to the bonus, if the missionary requests it.
In most cases, receipts are not required because this is not a reimbursement.
Missionaries whose ministries require the purchase of a vehicle.
Submit the International Bonus for Moving and Vehicle, using instruction for Settling In Bonus
The purchase of the vehicle and taxes related to purchase
For costs related to maintenance, taxes, insurance that cover the on-going cost of the vehicle, the needs to include the monthly expenses in their Support Goal.
The purchase of a vehicle is considered extra income and fully taxable.
Exceptions can be made at the discretion of the Missionary Resources Director. Contact the International Missionary Liaison for details on how to request an exception if needed. |