Gifts and social secuity tax

by toni
(Myrtle Point, Oregon)

Here is the scenero: A person who used to be an active member and some of his family were deacons of church A . The person left the church A 3 years ago and became a pastor in church B. During the past two years the person received a love offering of 4000.00 each year to pay necessary living expenses from church A. The church A issued a 1099 to him. Is this money taxable to him and if so, is it taxable to social security also. He did not do any services for the old church A nor was he a member of the church A at the time of the gift.

Comments for Gifts and social secuity tax

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Mar 11, 2012

Taxes
by: Sandi

always check the IRS web site for info. However I called them (IRS) as our church also gives over 600 to a few pastors not of our church and they replied that they did not need a 1099 as no services were performed for our church, the individual recieving the money should check with their accountant to see if they need to claim it as other income.

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

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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