Church Helps with Car Payment and Expenses

My Husband and I are pastors of a small church about 20 members. They do not pay a salary but give him a small amount to help with his car payment and car expenses. Does the church have to give him a 1099 for this? He has an outside job not connected with the church. In other words, he is bi-vocational.

vickey's reply

If the total annual amount is over $600, the church would need to issue him a 1099; however, even if they do not give him a 1099, you will need to report the full amount as taxable income.

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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.

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