If a church pays a pastors surgery expense, how can it be reported to minimize taxes.

by Tommy
(North Carolina)

I am a pastor and my church wants to pay $2000 to cover insurance deductable. Can they do this without me having to pay taxes on the $2000?

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2Comments

Taxable Income

VVickey

Marcus is right. It would be taxable income.

In my opinion, it would be better for the church to write a check payable to you for the deductible and then (if you itemize) you could deduct it and other medical expenses on your Schedule A...but you can only deduct the amount by which your total medical care expenses for the year exceed 7.5% of your adjusted gross income.

See this page for more details.

Paying for Pastor's Surgery

MMarcus in Texas

Whether the $2,000 is paid directly to the surgeon/hospital on behalf of the pastor or paid to the pastor to reimburse him for expenses relating to the surgery, it would seem that this would still be considered as taxable income, but would be subject to becoming a deductible item (partially) if the pastor itemizes deductions when he / she submits the tax return.