Gifts from the Church Taxable?

Is money given by the church to the pastor for Christmas and for pastor appreciation included in W-2 Earnings?

Vickey's reply
It would be taxable.

If the gift was taken up as a love offering from the church as a whole and the monies were processed through the church then the church would be responsible for adding it to his reported income.

If church members gave the Pastor their gifts to him personally it would be up to the pastor to report it.

Comments for Gifts from the Church Taxable?

Click here to add your own comments

Oct 17, 2012
Gifts to independent contractors
by: Anonymous

Are monetary gifts given to a person the church pays as an independent contractor reported on their 1099. For example, the independent contracor receives a "Christmas Gift" of $xx.xx from the churches budgeted funds. Is the church required to include this amount on the independent contractor's 1099?

Nov 20, 2012
Gifts Taxable to Independent Contractors
by: Vickey

Yes, it would be added to his 1099-MISC if total over $600 for calendar year.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Clergy Tax Q&A.

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.