Minister Auto Expense Reimbursement

[thomtax]

I do the W2s for some small churches for the pay of their minister, mostly as a freebie favor to treasurer friends. However, it has been a few years since I have had this situation and my mind is blank. I have looked through the Gear Up minister course and the TTB and unless I have overlooked it, do not find an answer.

If the minister received a car allowance, is this entered on the W2. My understanding is that it is a non-accountable expense plan, but they are going to get back to me on that.

Thanks to all.

LT

[RLymanC]

Ministers expenses

Reg. 1.162-17 (c) say’s:
Expenses for which the employee is not required to account to his employer. If the employee is not required to account to his employer for his ordinary and necessary business expenses, e.g., travel, transportation, entertainment and similar items, or, though required, fails to account for such expenses, he must submit, as part of his tax return, a statement showing the following information.

All amounts received as advances or reimbursements from his employer that were not adequately accounted for, must be included as income on Form W-2, Box 1. In order to deduct non-accounted professional expenses on his tax return, he must complete Form 2106 based on his records and supporting evidence.

The consequences of a non-accountable plan:
The expenses become “below the line” deductions on form 2106 and Sch. A

It is much better to establish an accountable plan with aand submit all expenses to the employer.

See IRS Pub 517 page 9 and pages 11 through 21

[Davc]

It is wages if it's a non-accountable plan, just like for the rest of the world.

[veritas]

Of course we must

remember that the second or third trip the minister makes to the church for meetings and such are an allowable expense. But only for pastors.

[MAMalody]

remember that the second or third trip the minister makes to the church for meetings and such are an allowable expense. But only for pastors.

I must have missed this one. Do you have a cite for this that I can research to become more familiar with this.

[veritas]

I was

not serious.....

[thomtax]

Thanks

......for the advice. It confirms what I thought, but could not find what I wanted to find in print.

[jainen]

next three months

>>I was not serious.....<<

Unfortunately, Veritas, sarcasm doesn't play very well on a tax forum. I have noticed you can't be subtle at all. Even the most ridiculous things may be believed. No doubt it will only get worse for the next three months or so.

[veritas]

>>I was not serious.....<<

Unfortunately, Veritas, sarcasm doesn't play very well on a tax forum. I have noticed you can't be subtle at all. Even the most ridiculous things may be believed. No doubt it will only get worse for the next three months or so.

Thanks so much for your astute observations.
Why be subtle? It's a waste of time.

I will be more cautious going forward during the busy time it is not my intention to confuse or mislead anyone.

[jainen]

two weeks in April

>>Why be subtle? It's a waste of time. <<

One of the great things about tax season is you don't have to be sarcastic at all. The real clients are plenty weird enough. Although I love the great vaudeville act that is the first week of February, my surrealist favorite is the two weeks in April.