Two Year Window Rule

by Nic Campbell
(Rock Hill, SC, USA)

So I am a bit confused on the idea of the two year window. I was just ordained a couple weeks ago so do I wait 2 years before filing or do I need to file now and just put the time in advance that I will be working for the ministry?

Comments for Two Year Window Rule

Click here to add your own comments

Oct 12, 2015
Do it now if you are sure of all implications...
by: Anonymous

I just saw in the IRS Tax publications that even living in a parsonage that has been provided for a minister at no expense to him is considered self employment income by the IRS, Now I'm a bit confused on the matter because I thought the 2 years began when you started receiving wages from the church but the parsonage may be considered wages.

I think I'm one of the many Pastors that really doesn't know how to live in this world very well. It all seems a little too complicated for me.

When you look at a Housing Allowance understand that even living in a free Church parsonage is considered "Self Employment income" and Taxable I thought money had to change hands but I guess not now.

So, as I said, know what you want to do, pay an expensive Accountant and really figure this stuff out. Don't listen to your buddies in ministry that give you weak advice. Find an expert and know what you are doing before you do it.

All this stuff of taxes is a worldly thing and the world has a way of making things too complex to be understood by us laymen.

Oct 13, 2015
Thanks
by: Nic Campbell

Yeah I just went with the CPA. I just send him a spreadsheet of everything and let him figure it out. It has done pretty well for me so far. He's not cheap, but it's surely worth it to know things are done right.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to IRS Form 4361.

Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?