A memeber of clergy is given a grant to go on sabbatical. Is the grant amount income taxable? Is it subject to self employment tax?
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Sabbatical grant
Why would it not be taxable?
TP may have usual deductions and/or credits.
Your facts do not indicate it is a love offering (which is entirely different issue).Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important. -
Generally, a sabbatical is taxable income. It is possible to contruct is as nontaxable, in a very limited sense, as a scholarship. Two hurdles must be overcome to do this. (1) The income tax regulations specify that scholarships provided to employees by an employer as compensation for services cannot qualify as a nontaxable benefit. (2) Few sabbaticals would meet the requirements for a nontaxable scholarship (for example, the recipient of the scholarship must be a candidate for a degree at an educational organization.Comment
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