Pastor signed over payment for services as a musician

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?

Comments for Pastor signed over payment for services as a musician

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Jan 27, 2013
payment for services returned
by: Anonymous 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.

Jan 27, 2013
returning checks
by: Anonymous

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

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