Withholding Taxes and 1099 or W-2?

by Cindy
(Metroolis, Ill.)

My husband and I co-pastor a small church, under 50. We receive 12,000/ year. We are bi-vocational and have our SS, medicare and taxes withheld at a a higher rate at our jobs. Is the church required by law to do withholding? Should the church give us a 1099 or a W2? We have conflicting information. We also paid self employment taxes last year. Thanks.

Comments for Withholding Taxes and 1099 or W-2?

Click here to add your own comments

Jan 07, 2013
pastor income
by: Anonymous

the church in most cases give out W-2's for pastors, they do not withhold taxes if they are a "qualified church". see IRS.gov for more information. You might also look into the IRS publication 15 series to help clarify what is allowed and how to comply with regulations. Don't take peoples word for things you can find out for yourself, kinda like making sure you read the bible instead of just listening to people who claim they know... :0)

prayers

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 Clergy Tax Q&A.

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