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.

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Mar 11, 2012
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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