by db
(MN)
Our church took an offering for one of our members and it was a significant amount. Is the member receiving the offering required to pay taxes? Secondly, is the church required to pay gift taxes?
Thanks.
3Comments
standing corrected
LLewis in NC
I stand corrected; it sounds like the law puts the full burden of any tax reporting on the nonemployee recipient of the love offering. I will get me a copy of your source--the reviews of it are excellent. Thank you for sharing the clarification.
Love offering to a member...
AAnonymous MN
If the Love Offering to a non employee member is a benevolent gift ...
... according to Zonervan's 2014 Church and Nonprofit Tax & Financial Guide written by Dan Busby CPA, J Michael Martin JD, John Van Drunen JD, CPA, page #110,
'Benevolence payments to nonemployees are not reportable on Form 1099-MISC or any other informational form. Benevolence payments to employees are reportable on Form W-2.'
... according to Zonervan's 2014 Church and Nonprofit Tax & Financial Guide written by Dan Busby CPA, J Michael Martin JD, John Van Drunen JD, CPA, page #110,
'Benevolence payments to nonemployees are not reportable on Form 1099-MISC or any other informational form. Benevolence payments to employees are reportable on Form W-2.'
Love offering to a member. . .
LLewis in NC
The answer to your first question is yes since the church should also prepare a 1099 form for the member. The answer to the second question is no. Please read more under the tab to the left, "Gift to Individual."