Actscelerate.com

Ministry Tax Reference sources.

Friendly Face Posts: 496 **1/3/17 4:30 pm**

A separate thread asked some questions on a pastors housing allowance. I would suggest reading these sources for information on this very narrow area of tax law. Even if you use a CPA (and I mean actual CPA not just anyone who prepares taxes--that is a pet peave of mine where I have heard time and time again where one refers to their "CPA" who is nothing more than a tax preparer, either as an individual or as part storefront chains such as H & R Block, etc), I suggest taking these publications to them as the odds are the person, even a real CPA, may not be familiar with the unique nuances of minister's taxation.

A HUGE CAVEAT
In reading the following material, you may see provisions regarding the clergy being able to be excluded from Social Security tax. PLEASE NOTE!!!!!!!!!!!!!!!! That MUST be based upon religious and doctrine reasons, NOT because of personal disagreement with the Social Security System. I DO NOT BELIEVE CHURCH of GOD, or CHURCH OF GOD OF PROPHECY ministers have a leg to stand on in this regard unless the official Church doctrine has issued doctrine in this regard! I almost excluded some of the links because of the information contained alluding to that possibility. You could be subject to SERIOUS fines and penalities if you chose to declare your self exempt from Social security, NOT even considering the fact you would have to PAY the amounts you previously claimed as being exempt!!!!!!!!!!!!!!!!!!!! DO NOT GO THERE!!!!!!!!

Here are a few links regarding minister's taxes. The "Hammer" text would be an excellent source that I would highly recommend. Richard Hammer is a well known authority on Church Law. I could not find the text I used 30 years ago, but these should be good sources. There are also IRS publications regarding minister taxes. Frankly, I would take those to your CPA to help speed up his/her research on the area, thus reducing your tax prep fees.
Note the tax advisor reference is not current for 2016 taxes, but much of it is likely applicable.

https://www.irs.gov/pub/irs-pdf/p517.pdf
https://www.irs.gov/taxtopics/tc417.html
https://www.irs.gov/pub/irs-pdf/p1828.pdf
https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-answers/interest-dividends-other-types-of-income/ministers-compensation-housing-allowance
https://www.mmbb.org/docs/HousingAllowanceWorksheet.pdf
http://www.thetaxadviser.com/issues/2015/jun/campbell-june2015.html
http://store.churchlawtodaystore.com/20chcltaxgu1.html

Richard Hammer

Acts-celerater Posts: 935 **1/3/17 6:17 pm**

Is the authority on these matters. In addition, he is our (the Assemblies of God) in house attorney.

Re: Richard Hammer

Friendly Face Posts: 496 **1/5/17 5:42 pm**

Didn't know that, but I agree he is an authority. Every pastor should read "Pastor Church and Law"

Friendly Face Posts: 434 **1/5/17 11:27 pm**

Thanks Methocostal and brotherjames for taking the time to share this valuable information. I really appreciate the help.