Can the church pay for education expenses of the Pastor's children?

Can the church help to pay for the educational expenses of the Pastor's children and is it taxable for the Pastor?

Comments for Can the church pay for education expenses of the Pastor's children?

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Jan 15, 2013

dependent educational expenses
by: Anonymous

According to ISS pub 15b http://www.irs.gov/publications/p15b/ar02.html
It looks like if your church gives this benefit for dependents it would be included as income in box 1 of W2. The Pastor may be able to claim if on their own, have them see pub 970.
You might see if it could be redone as "dependent care" if they qualify, see pub 503.
Prayers.

Jan 24, 2013

A Better Way
by: Vickey

It would definitely be taxable and I would worry about the IRS claiming private inurement if it was being included in his pay.

In my humble opinion it would be better to raise his pay to cover that cost and he could pay those expenses out of his own pocket.

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

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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