Gift of money to church member - taxable income?

by Kathy
(North Carolina)

If a church member is sent a check for $1,000.00 to help out with expenses - is it taxable income to the church member? The Church member did a large task at church and would not charge for the work. The pastor now want to send a gift to the member.

Comments for Gift of money to church member - taxable income?

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Nov 14, 2013

When is a payment taxable income?
by: MarcusNTexas

Yes, if the payment to the church member (or anyone else) is, in fact, for services render by the recipient, it is taxable income and a 1099 MISC must be sent to the recipient at the end of the calendar year. We recently had a similar situation at our church where the member needed financial assistance with his rent. He had been doing some work for the church and had not charged for his services, so we provided the financial assistance he requested but considered it to be compensation for the services he was continuing to provide. He was informed that he would receive a 1099 MISC in January 2014.

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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.

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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