Reporting taxable perks for pastors – Q&A

Question: Our pastors are allowed to charge their gym memberships on the church credit card. Is there a specific box on the W-2 where this is reported? Answer: No. The full fair market value of gym memberships is taxable and reportable on the pastor’s W-2s as wages in Box 1. 

Read More
Deducting Cell Phone Use for Ministry Purposes

Many Ministers use their own cell phone for Church activities. They also use it for personal calls. The big question is determining what you can claim on your return as a work deduction (without getting in trouble with the Internal Revenue Service!). We all know that the IRS is a document-focused agency. If you are…

Read More
Claiming Honoraria Expenses

You may not think of payments received from Honoraria, Weddings, Funerals and Pulpit Supply as business income, but that’s exactly how IRS treats them on your tax return. Just like any other business, if you have unreimbursed expenses while doing those activities, you can claim those expenses as deductions and reduce the tax you owe….

Read More
Property Tax Exemption for Parsonages

Some states exempt parsonages from property taxes which can either be homes owned by churches and occupied by clergy who serve a local church. California California property tax laws provide for three exemptions that may be claimed on church property: • The Church Exemption, for property that is owned, leased, or rented by a religious…

Read More
Deduct Expenses Related To Church Mission Trips On Your Taxes

Summer is popular time for many churches to spread their ministry beyond the walls of their church. Whether your mission trip is an hour away or halfway across the globe, there is a substantial tax benefit available to people donating towards a mission trip.  Many people that go on mission trip do not receive the…

Read More
Request Information

Complete the request form and a clergy tax, payroll or HR advisor will contact you

Click Here