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Taxable Income

by Chin Li
(Bloomington, Illinois)

My minister receives about $4,000 for the automobile maintenance for his private car and about $4,500 for continuing education from the church. Both of them do not require substantiation of business expenses.

So, I think these are minister's taxable incomes which should be reported in the Box 1 of W-2 form for the minister. I want to firm my thought. Thank you.

Answer

You are right. You might want to let your minister know he may be able to take some of those expenses off his personal income tax return if he itemizes.

Hope this helps,



www.freechurchaccounting.com

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Taxable Income

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Apr 07, 2010
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Taxable Income
by: Anonymous

Your church should probably set up an accountable reimbursement plan,

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