refundable insurance premiums paid for pastor

by april
(montana)

This is concerning Form 8941 to apply for the credit for paying insurance premiums for employees. After doing all the math and proving by common law that our pastor is an employee for the sake of this credit, line 19 seems to imply that if I didn’t withhold his taxes then we cannot get this credit. The language says:

line 19
Enter the amount you paid in 2012 for taxes considered payroll taxes for purposes of this credit (see instructions)...
And on line 20 it says:
Tax-exempt small employers, enter the smaller of line 16 or line 19 here and on Form 990-T, line 44f...

Line 16 being the number that would have been the credit. So if line 19 was -0- because we didn’t withhold any payroll taxes then we don’t get a credit?
I’m not sure how that works, because as a pastor he is treated as self employed and pays his own taxes and since the taxes are still getting paid why are we penalized?
Also, if I am reading this wrong and we really can get the credit, how do I also get the credit for the previous year (2011)?

Comments for refundable insurance premiums paid for pastor

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Mar 01, 2013
Form 8941
by: Anonymous

I am not absolutly sure but I believe you must have at least one employee you are paying taxes for other than the pastor (Pastors are dual status and churches do not pay their taxes). You can call the IRS to help you fill out the form if needed.
Hope this helps
Prayers

Mar 01, 2013
Healthcare Credit for Churches
by: Vickey

I would contact William O'Connell from http://www.wisdomoverwealth.com/

He wrote the Healthcare Credit article for my site and is very knowledgeable about the healthcare credit for churches.

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