by DrP
(Wentzville, MO)
Can a minister elect to collect an $80,000 housing allowance and no salary and not pay any taxes whatsoever?
If this handled directly with the treasurer but not recorded in the minutes, is this "legal?"
2Comments
Housing allowance only???
AAnonymous in NC
Sandi is giving you a good resource for your questions.
Most likely you will need to pay Self-employment (Social Security taxes) on the housing allowance that you receive in lieu of salary.
In a high rent/high housing cost location (like LA or New York City) it would be possible to embody all the pastor's benefits/pay into his/her housing allowance; however, it would be wrong for the treasurer of the church to arrange this. It needs to be through actions of the admin. board and in writing. The resource that Sandi referenced will explain all this.
Most likely you will need to pay Self-employment (Social Security taxes) on the housing allowance that you receive in lieu of salary.
In a high rent/high housing cost location (like LA or New York City) it would be possible to embody all the pastor's benefits/pay into his/her housing allowance; however, it would be wrong for the treasurer of the church to arrange this. It needs to be through actions of the admin. board and in writing. The resource that Sandi referenced will explain all this.
who decides benefits
SSandi
you and your church need to read http://www.irs.gov/pub/irs-pdf/p1828.pdf
and the 15 series
prayers
and the 15 series
prayers