Announcement

Collapse
No announcement yet.

Clergy

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Clergy

    My client has a full time job and is also a minister. The church he is providing services pays him $1,000 a month housing and $300/month salary for services. They have a "verbal" contract. They will not provide him with a W-2 or a 1099MISC. This just seems incorrect, but I still need to report it.

    Should I report the $3,600 salary on Schedule C and the $12,000 subject to SE tax only?

    I'm tired and don't mean to sound stupid but am I correct in thinking that he would not be entitled to the exemption from SE based on "religious or conscientious opposition to the acceptance of any public insurance for death, diability, old age, retirement, or medical care" because he is also receiving wages from other sources with SS and does intend to collect unemployment when he retires - so no 4136 or "vows of poverty".
    http://www.viagrabelgiquefr.com/

    #2
    I would report the 3600 as wages. Use the tip form to have the client pay his share of social security. The 12,000 housing allowance is subject to social security and goes on form SE. The 12000 will not be subject to federal tax as long as housing costs equal or exceed that amount. I haven't looked yet but I'm sure The Tax Book has instructions for handling clergy. If the minister receives payments for things like weddings or funerals those amounts would go on SCH C.

    Also I am assuming this individual truly is a minister.

    Comment


      #3
      See Publication 517 (SS for Clergy) for worksheets to determine if any of the $12,000 is taxable as Sch-C. http://www.irs.gov/pub/irs-pdf/p517.pdf

      Comment


        #4
        Thanks

        Thanks for your help. I'm going to study the Pub 517 before going any further with this client. I may return for more help - you guys are GREAT!
        http://www.viagrabelgiquefr.com/

        Comment

        Working...
        X