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    Cory26's Avatar
    Cory26 Posts: 5, Reputation: 1
    New Member
     
    #1

    Jan 21, 2008, 05:26 AM
    Church/Pastor Tax Information
    Hi,
    I attend a small church (50 or so members.) OUr pastor does not receive a W2. He has always claimed using a Schedule C. He has found out that by doing this, he is not getting the standard deduction credit nor is he getting credit for the 4 dependents he has.

    We want to have him listed as an "employee" and start issuing a W2 so he will get these deductions.

    Question 1. How would we go about setting him up on a W2 (what does the church need to do)

    Question 2. Is it too late to do this for this past 2007 year for the taxed we are now filling?

    Thanks,
    Cory
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Jan 21, 2008, 10:18 AM
    Your pastor is making some mistake. Even if he files Schedule C (Form 1040) with his tax return form 1040, he will get standard deduction and all the dependent exemptions.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #3

    Jan 21, 2008, 10:30 AM
    I agree with MukatA; your paster is probably not filing correctly.

    Further, tax returns for ministers requires submission of special documentation. He should get professional help from a tax professional with experience filing returns for ministers.
    Mobea's Avatar
    Mobea Posts: 220, Reputation: 15
    Full Member
     
    #4

    Jan 21, 2008, 02:54 PM
    I totally agree with ATE. My daughter is a youth minister and her's is one of the hardest returns that I have to work on. LOL
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
     
    #5

    Jan 21, 2008, 04:07 PM
    Yes, very hard return, I will note, that the income is shown as income, and it gets harder if they funish his home or any transpertation.

    But it is recorded as income regardless if he gets a W2 or not, it is still income. So his deductions make no difference and his deductions would be the same with or without a W2, so if it is not working now, it is his method of doing the tax

    OR, he is trying or wanting to claim things not allowed under current laws.

    I make mine real easy now adays, I refuse any pay for my services to the church, and have them make it a donation to some charity or just a dontaion to our church.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #6

    Jan 21, 2008, 04:20 PM
    Smart idea, Fr Chuck. Of course, most ministers cannot afford to do that!

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