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

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Sep 09, 2010
 Paying for Pastor's Surgery
by: Marcus 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.
Sep 10, 2010
 Taxable Income
by: Vickey

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.

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

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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