FORM TO REPORT PASTOR INCOME

by Krista Nesbit
(Baton Rouge, Louisiana)

WHAT FORM WOULD YOU USE TO SHOW A TAX EXEMPT FOR A PASTOR'S INCOME

Comments for FORM TO REPORT PASTOR INCOME

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Jun 26, 2012

Form?
by: Anonymous in NC

Report the pastor's income that is not exempt on Form W-2. Pastors who are hired on a contractual basis should have their income reported on a 1099 form.

Feb 07, 2013

Pastor's Income is Taxable
by: Vickey

Not sure what you mean. A Pastor’s income is not tax exempt. A church does not hold out income tax or FICA on them, but that doesn’t mean they are exempt. It just means they have to pay their Social Security and Medicare taxes through the SECA system as the IRS considers them to have a “dual status” (Considered an employee for federal income tax purposes and self-employed for Social Security and Medicare purposes.)

They pay income tax by estimated tax payments or by asking the church hold out income taxes for them.

Now a pastor can opt out of paying Social Security and Medicare taxes by filing (within a certain time period) and getting approval on a Form 4361 ... but there is no way that I know of to “opt out” of paying income tax :-)

If you are just asking how to report the Pastor’s income, Anonymous in NC has provided you with the correct reporting forms.

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Join in and write your own page! It's easy to do. How? Simply click here to return to Minister's W-2.

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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