2 year rule

by Nikki P

My husband and I went into ministry 6 years ago. When I filed our taxes with H&R Block, I inquired about why we were paying self-employment taxes.

I was rudely told by the manager that "pastors have to pay taxes too." So, not having an accounting degree or something, I figured this was just an error made by the government.

Are there exemptions made for the 2 year rule? We truly believe that this is really not good stewardship of the money God has given to us. Also, a number of religious/political reasons. Thank you!

Comments for 2 year rule

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Jun 01, 2020
Past the 2 Year Window
by: Vickey

That's sad that the tax preparer was so rude, but you have to file the 4361 form within 2 years of receiving income from your ministry.

I don't know of any "loophole" to get around that =(

You may try contacting a CPA that is knowledgable regarding minister's taxes such as http://www.ministrycpa.com/ or https://www.nonprofit-tax.com/

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

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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