Our pastor also served as a minister of music and was issued payment for this through the church and not Paycheck (where is pastoral salary is paid). He then signed the church check back to the church (without cashing it) and asked it be included as his tithes and offering. How should this be handled for tax purposes?
2Comments
returning checks
AAnonymous
IRS Pub 526 states: "You can not deduct the Value of your time or services"
The easiest way and the least questionable-booking wise- would be for him to cash the check, add it to his income and then he can donate the money and it will show up in his giving statement.
Prayers
The easiest way and the least questionable-booking wise- would be for him to cash the check, add it to his income and then he can donate the money and it will show up in his giving statement.
Prayers
payment for services returned
AAnonymous in NC
This should be added as income on his W-2 form and he should be issued a giving statement as a receipt for signing the music check back to the church.