Can the church pay for education expenses of the Pastor's children?

Can the church help to pay for the educational expenses of the Pastor's children and is it taxable for the Pastor?

Comments for Can the church pay for education expenses of the Pastor's children?

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Jan 15, 2013
dependent educational expenses
by: Anonymous

According to ISS pub 15b http://www.irs.gov/publications/p15b/ar02.html
It looks like if your church gives this benefit for dependents it would be included as income in box 1 of W2. The Pastor may be able to claim if on their own, have them see pub 970.
You might see if it could be redone as "dependent care" if they qualify, see pub 503.
Prayers.

Jan 24, 2013
A Better Way
by: Vickey

It would definitely be taxable and I would worry about the IRS claiming private inurement if it was being included in his pay.

In my humble opinion it would be better to raise his pay to cover that cost and he could pay those expenses out of his own pocket.

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