Top 10 Questions that Ministers, Missionaries, and Church Treasurers Ask Tax Preparers
Based on our experience, the following are frequent questions asked by ministers, missionaries, church treasurers, and others serving in ministry positions as licensed or ordained ministers. Our answers are not intended to be exhaustive. Accordingly, you should consult your own tax professional for assistance in applying this information to your specific tax situation.
- Am I an employee of the church or am I self-employed?
- What can I deduct for a housing/parsonage allowance?
- What are my retirement plan options and what are the advantages/disadvantages of each?
- Do you think I should suggest that the church set up a car allowance?
- What reports do the church need to file with the government regarding my compensation?
- What ideas can a church consider to control its rising health care costs?
- Can a church give non-taxable gifts to its minister?
- How can the church and I work together to sell the parsonage and to get my family into a home of our own?
- Should I "opt out" of the social security system?
- What bookkeeping system can our Treasurer use to keep the church books?
- How do you respond to my fellow minister's comment: "I do _____________ and the IRS has never questioned me"?
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