Non- paid minister

Our minister receives an expense check only for an agreed upon amount by our church. Also he lives in the church's parsonage. How and what should he be required to file? The church does not provide him with a salary.

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Mar 07, 2011
Filing on a Church Parsonage
by: Vickey

If he lives in a church provide parsonage, he is not subject to income taxes on the use of the parsonage.

However, the fair rental value of the parsonage is added when figuring his self-employment tax. (The minister is responsible for determining the fair rental value of the parsonage).

He would file this amount on a Schedule SE on his personal income taxes.

Also, if he is not considered an employee and his expenses are not being reimbursed through an account reimbursement plan, then the expense check would be taxable income as well.

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