Fringe Benefits for Pastors

“Dual Status” is what the IRS considers ministers who pass their 5 point test. They are considered an employee of the church for federal income purposes and self-employed for Social Security and Medicare purposes. The church does not withhold or match Social Security and Medicare taxes on a qualified minister.

If you are withholding and matching Social Security and Medicare taxes on your minister because he does not meet all 5 tests, then even though he could be eligible for some of the above mentioned benefits…he is not eligible for a housing allowance.

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Please take a moment to skim the following posts and see if there is a question or comment that you yourself have faced and know the answer to.

Questions and Comments on Ministers' Fringe Benefits

Do you have a question or comment about minister or pastor fringe benefits? Share it!

Archive of Fringe Benefits Questions (& Answers)

Click below to see contributions from other visitors to this page...

(Click on the read or post comment on the bottom of the question to see the answers and/or add your own comments or answers!)

contributions to a retirement plan
Are salary reducing employee contributions to a retirement account by clergy subject to any taxes or are they completely pre-taxed?

Pastor Designates Allotments to Fringe Benefits
Our pastor designates a certain amount of his salary for housing, life insurance and a medical reimbursement plan.

He submits receipts and we reimburse ...

Benefit
Every year my pastor gets $7,000.00 as a gift from the churh. Is this money reportable to IRS by both my church and the pastor?

SS & MC Taxes
If a minister is considered "Dual-Status" according to the federal tax guidelines is it permissible for the church to include in his salary the amount ...

pastor life insurance
what is the greatest amount of life insurance a church can take out on a pastor.

[Know the answer? Face the same situation? Please post your answer ...

Is a Pastor's book allowance taxable?
Hello. I am a pastor of a church in North Carolina. In our budget is a line item for Pastor's Resource (I buy books, journals, etc.) with this.

It'...

Insurance for the pastor and wife
Is the church reimbursement of premiums for Individual insurance for the pastor and his wife legal?

[Know the answer? Face the same situation? Please ...

Is it a bad decision for the pastor to take a housing allowance due to the SE tax?
We chose the housing allowance because we thought it avoided payroll taxed for our church. It appears that it will now double our finacial responsibilities ...

chaplain
Can a chaplain who is a lay-minister (not ordained) be elegible for housing allowance?

[Know the answer? Face the same situation? Please post your answer ...

Retirement
My husband is the pastor of a small congregation. Can they put money away for his retirement without him having to pay self employment tax on it- What ...

Is an automobile allowance taxable?
Our minister receives a fixed amount annually for use of his personal autmobile. This amount is not based on actual mileage, and is not supported with ...

Is housing allowance paid to the pastor included in the 1099 he receives. He does not get a salary for a w-2.
We are currently giving our pastor what we call love gifts out of the church general fund. He does not get paid a salary. In addition to the love gifts ...

Housing Allowance - Severance Pay
If a church lets a pastor go and agrees to pay him 6 months severance, how is it paid out? Does the "Housing Allowance" still apply or does the entire ...

Serving Religious Non-profit ... Am I Eligible?
I have just begun serving a religious non-profit that is engaged in active ministry, but is not a church. I believe I still fulfill the 5 point test in ...

Issued Minister Form 1099-Misc.
For this 2010 year, I will issue my Pastor Form 1099-Misc. In box 7 "Nonemployee Compensation" I believe I just need to put his base salary (For Income ...

not ordained minister but receiving housing allowance, report for taxes?
My Husband is not ordained but he is the youth pastor at our church and administrator to our very small Christian school.

He receives a housing allowance ...

Reporting a Housing Allowance
I receive all my salary in HA. I do not get a W2. How do I report that to the IRS?

vickey's reply

If you are an employee of your church, then ...

Housing Allowance or Wages?
My husband is an ordained pastor of two churches. He does qualify as a minister under the IRS rules.

He is the only person who gets paid at both ...

Dependent daycare Not rated yet
Can my husband who is a minister pretax dependent daycare when he sets up his salary package for the year?

ANNUITY REPORTING ON W-2 Not rated yet
OUR CHURCH AGREED TO SET-UP AN ANNUITY (403B) FOR THE PASTOR REDUCING HIS TAXABLE SALARY.
AT THE CONGREGATIONAL YEARLY BUDGET ...

Volunteer Youth Pastor Not rated yet
My husband is a youth paster. He does not get paid. He is not required to be ordained. Can he be tax exempt? Or since is he considered volunteered?

...

Church Helps with Car Payment and Expenses Not rated yet
My Husband and I are pastors of a small church about 20 members. They do not pay a salary but give him a small amount to help with his car payment and ...

auto allowance Not rated yet
Our pastor does not get a salary but we give him an automobile allowance. Do we have to show that or report it to IRS?

vickey’s reply

If it is ...

944 for 2010: Employer's annual Federal tax return Not rated yet
Do I include the pastor salary on this form with the other 2 employees we have that we pay SS and medicare for.

[Know the answer? Face the same situation?...

District Tithe Requirement for pastor paid by church - LEGAL? Not rated yet
Our church pays the pastor's tithe obligation to our District Office. It is not pass-thru. The money paid is not given by the pastor to the church and ...

Voluntary salary reduction to a non-profit organization Not rated yet
Our pastor has requested that his salary be reduced by $250 per month as his "contribution or tithe" back to the church in order to reduce his taxable ...

How to file for self employed Minister with housing allowance Not rated yet
If the 1099 form does not have a designated spot for housing allowance how is it filed? Example; if I am a part time paid pastor who gets 2000 a month ...

How to handle additional medical expenses Not rated yet
Our minister is being paid his salary and then the church also issues him a check monthly for any and all medical bills not covered by his insurance, co-...

HSA church deposits taxable? Not rated yet
If a church deposits directly into a HSA to assist the pastor with the high deductible, are those monies reported and taxable (we're W-2 reporting)?

[vickey'...

Housing allowance for youth/music minister Not rated yet
Do you have to report Housing allowance for a youth/music minister that you do a misc 1099 on?

I have just recently taken over this job and the prior ...

Housing Allowance Not rated yet
I am a Reverend in my church, but not the Pastor.

I meet four of the five separate tests (I only minister occasionally) I do not have any management ...

Medical Allowance for Pastor Not rated yet
Question regarding a medical allowance for our pastor:

I am the bookkeeper at our Church and am trying to finish up the W-2's for all employees.

Our ...

Clergy's Housing Allowance on 1099-misc Not rated yet
I have a SELF-EMPLOYED minister for whom I am completing a 1099-misc.

Where do I enter the amount for his housing allowance?

And where do I enter ...

Health Insurance Reimbursement Not rated yet
I am a pastor and pay my own taxes thru the quarterly ES form. My wife works outside the home and we get health insurance thru her job. The church reimburses ...

Medical Savings Account for Pastor Not rated yet
If a savings or checking account is set up by the church to help the pastor with medical expenses, are those monies considered as taxable income to the ...

Fringe Benefits including Housing Allowance for Ministers

Questions and Comments on Ministers' Fringe Benefits

Archive of Fringe Benefits Questions (& Answers)

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