Financial Gifts to an Unsalaried Pastor

by Bill Baldwin
(Urbana, Ohio)

Our pastor is not "full time" and holds another employment.

The church gave him a love offering and financial gifts throughout the year that totals more than $15,000.00.

Is the church responsible for paying a gift tax on that money given to the pastor?

1Comments

VVickey

No; however, the church is responsible for reporting those taxable "gifts" to the pastor.

That amount should be reported in a 1099-NEC or W-2 depending on your particular circumstances...but the gifts MUST be reported. The IRS considers love offerings and gifts taxable income when given to an individual that is doing a "service" for the church. Please seek the advice of a knowledgeable tax professional on which form to report those gifts on.

Your pastor will be responsible for paying the income and self-employment taxes on those gifts.