I voluntarily have my Social Security taken out.

by Phil

I'm am a pastor. The church and I have agreed to have my Social Security taxes taken out voluntarily. I filled out the w-4 to have this done. On my w-2 these taxes show up as being taken out in box 2 as federal income taxes. Where on my tax form do I show that these taxes are already taken out?

Comments for I voluntarily have my Social Security taken out.

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Apr 08, 2013
by: Sandi

I used the sitesearch and found the following-
for the church:
"Income tax withheld for Pastor
by: Vickey

If you pay his income tax for him on top of gross wage, then you will have to include the amount on W-2.

It would be more beneficial for your pastor if when he filled out a W-4 have the church hold out his income taxes and an extra amount that would cover his self employment taxes also.

You would report his withholding on a form 941."

and for the employee:
"Reporting Income
by: Vickey

It would depend on how it was reported.

If you are an employee of the church, it should have been included in box 1 of your W-2 You would then record that amount on line 7 of a 1040.If it wasn’t included in your W-2, you could report it on line 21 (Other Income).

If you are self-employed, it would be included in line 1 of a Schedule C.

hope this helps

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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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