Small church guidelines for gifts to pastor

How should a small church (tithes and offerings less than $75000 annually) handle and report monetary gifts to its pastor and immediate family?

The pastor is a non-employee but he receives a monthly household allowance.

Comments for Small church guidelines for gifts to pastor

Click here to add your own comments

Nov 19, 2019
Taxable Income
by: Vickey

First of all, I would be concerned about classifying a Pastor as a non employee.

A Pastor is usually classified as an employee of the church for income tax purposes and self-employed for Social Security.

With that special dual status, their compensation is usually reported on a W-2 not a 1099.

However, no matter how you classify them, love offerings (gifts) are considered taxable compensation by the IRS.

You would NOT report the housing allowance on a 1099, but you would report the "gifts" given to the Pastor from the church.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Love Offerings.

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.