How to handle additional medical expenses

by Diane
(Bellaire, Ohio USA)

Our minister is being paid his salary and then the church also issues him a check monthly for any and all medical bills not covered by his insurance, co-pays, dental bills, eye care, and so on. Is this considered income to him and does it get added to his salary?

vickey's reply

Yes. It is considered income and would be added to his salary. You might want to consider consulting with a tax professional or insurance representative about setting him up a HSA (health savings account or a FSA (flexible spending account).

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Medical Reimbursements
by: Anonymous

Medical reimbursements can be non-taxable if set up properly with a Health Reimbursement Arrangement (HRA). This type plan is mentioned in the IRS Publication 969. There are specific guidelines that must be followed.

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