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    Dybbuk's Avatar
    Dybbuk Posts: 1, Reputation: 1
    New Member
     
    #1

    Feb 23, 2007, 03:03 PM
    Calculting taxes for parsonage income
    Hi. If I correctly understand the IRS guidelines for parsonage (See Tax Topics - Topic 417 Earnings for Clergy) the parsonage income is exempt from Federal income tax, but it is taxable for Social Security, and Medicare. The cases discussed in the IRS literature always seems to assume that the clergy's employer do not withhold any taxes. But what if they do? What if the employer withholds normal FICA -- just as it does for non-clergy employees? Does that cover all of the federal tax liabilities?

    Also, does one need to provide any special documentation when calculating parsonage?

    Thank you.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Feb 24, 2007, 12:04 AM
    You need professional tax help! Further, the tax professional has to have experience in doing returns for ministers.

    I have ONE minister as a client, and her return takes TWICE the normal time.

    If you need my professional tax help, contact me at [email protected].

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