Clergy exempt from Soc. Sec. re: stimulus

[Skeemo]

Minister who has church income from several churchs (evangelist) has elected exempt from Social Security. He does not get W-2s, and reports income on Sch. C. When we exempt Self Employment Tax, my software says he is not eligible for Stimulus Payment. Is this correct? Is there a better way to report it?

[veritas]

Does the

minister have zero tax liability?

[Skeemo]

Sometimes we are so blind to the obvious. Thanks. I did not have all the other income (interest etc) keyed in.

Question: Being exempt from SS does not exclude his Sch C income from qualifying for the stimulus payment does it?

[JohnH]

Your answer might be found in the middle of page 3 of the following:

http://www.ustreas.gov/tigta/congress/congress_06192008.pdf

[veritas]

Good question

The code section dealingwith the stimulus payment defines "earned income" as:

The term "earned income" has the meaning set forth in section
32(c)(2) except that such term shall not include net earnings
from self-employment which are not taken into account in
computing taxable income.

This would preclude a pastor's housing allowance.

[veritas]

Good post John

Your answer might be found in the middle of page 3 of the following:

http://www.ustreas.gov/tigta/congres...s_06192008.pdf

was this what you were referencing?

"Programming did not include all qualified self-employment income in the determination of eligibility. As of May 30, 2008, TIGTA had identified approximately 25,000 returns for which the stimulus payment was not allowed. In these cases, we believe that taxpayers were entitled to an additional $16.5 million. These errors affected clergy and other individuals whose income is not subject to the self-employment tax. TIGTA plans to review the IRS’s programming of the stimulus payments for Tax Year 2008 to ensure these individuals will receive the payments they are entitled to when they file their 2008 return."

[veritas]

Maybe we could do a TV commercial

Your answer might be found in the middle of page 3 of the following:

http://www.ustreas.gov/tigta/congres...s_06192008.pdf

on TBN and get some business. How does 20% of 16.5 million sound?

We can have Bart do the script. We'll call the company John H Veritas and Associates.

Slogan- The truth will set your money free.

[Skeemo]

Thank you John H. Sounds like he may get it, but not until he files his 2008 return.

Thank you veritas. Housing allowance is not a factor as he does not exclude it from income. The question would be whether "Self Employment" exists since Self-Employment Tax is excluded. I believe the matter is defined in the paragraph you send and that John H referred me to.

Thanks guys!