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Monthly cell phone reimbursement

by Robert
(Rockford, Mi, USA)

Our pastors are given a monthly reimbursment for part of their cell phone cost, but I know of no evidence as to the percentage of the phone being used for church. Would this then be considered part of their pay package, and thus taxable?

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Mar 22, 2023
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by: Anonymous - MN

A number of years ago the IRS made a ruling/ decision that it was too difficult for the user of the cell phone to accurately say what percent of the phone usage was for business and what percent was for personal use. The cost of cell phone plans was not significant enough to continue to guess what the percentages were to continue to tax the personal use of the phones and therefore reimbursement for cell phone plans would not be considered taxable.

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