Question regarding clothing and training allowance:
My church has a special Pastor's Trust (or fund) for his robes and training. Is this taxable? Can it be a church expense item? It comes with his regular monthly salary, is that a problem?
Answer
Yes, according to the book: Clergy Tax: For 2008 Returns written by J. David Epstein, Tax Attorney, a travel and clothing allowance is taxable to a minister. However, he can deduct those expenses on his personal return.
You may want to consult a CPA on a better way to purchase or reimburse for those items such as an employee reimbursement plan.
written by J. David Epstein, Tax Attorney, a travel and clothing allowance is taxable to a minister. However, he can deduct those expenses on his personal return.
