I was ordained in May of this year, what is a website that lists all the benefits of being a minister or a tax-related book that shows what I am allowed to use for tax exempt purposes. Thanks, Reverend Craig
2007-09-13 06:30:23 · 7 answers · asked by craigcnnll 2 in Business & Finance ➔ Taxes ➔ United States
As an ordained minister, your earnings from your work as a minister have special tax treatments. They are described in IRS Publication 517:
http://www.irs.gov/pub/irs-pdf/p517.pdf
Two particular examples:
Ordained ministers may apply to be exempt from Social Security and Medicare by filing form 4029. If the application is approved, the minister does not pay SS and Medicare taxes on their ministerial income (and does not receive these benefits at retirement).
Ordained ministers who receive housing or a housing allowance as part of their compensation may be able to exclude that compensation from income tax. The value of the housing will still be subject to SS and Medicare taxes (unless the minister has received an exemption).
Tax returns for ministers, who may have filed for the SS exemption, who may have received housing or a housing allowance, and who may have self-employment income in addition to wages, can be tricky. Have someone who is experienced with clergy returns do your return if these situations apply to you, at least until you understand how the rules work.
2007-09-13 08:57:11 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
Are Ordained Ministers Tax Exempt
2017-01-19 09:57:32 · answer #2 · answered by ? 4 · 0⤊ 0⤋
In order to claim tax-exempt status for the purposes of federal filing, you'll need to establish a church. The organization can claim the exemptions, not you personally.
There are deductions you can take for work-related purchases, like vestments, suits, shoes, etc. Visit http://www.irs.gov for the whole story.
2007-09-13 06:38:24 · answer #3 · answered by Stuart 7 · 0⤊ 0⤋
Are you actually working and earning your income from being an ordained minister, or where you just ordained but your income is not from the ministry. Just being ordained doesn't give you tax breaks.
2007-09-13 16:13:28 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Talk to a tax accountant, they will be up to date on all the current state and IRS regulations / laws.
2007-09-13 06:39:14 · answer #5 · answered by Jan Luv 7 · 0⤊ 1⤋
IRS.GOV has a listing of tax exceptions for clergy.
http://www.irs.gov/publications/p517/index.html
2007-09-13 06:36:39 · answer #6 · answered by junebug 6 · 0⤊ 0⤋
There are no more exemptions for clergy....God said pay your fair share.
2007-09-13 06:39:46 · answer #7 · answered by Anonymous · 0⤊ 1⤋