Clergy Taxation: Housing Allowances, W-2 Reporting, Deason Rule, Gifts, and Social Security

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A


Tuesday, April 21, 2020

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, March 27, 2020

or call 1-800-926-7926

This webinar will explain the unique aspects of tax return preparation and planning for members of the clergy. Our CPA and church expert will cover the treatment of earnings by ministerial employees, including employment by a congregation, retirement income, social security, gifts, and housing allowances.

Description

Housing/Parsonage Allowance: Blessed by the Seventh Circuit, clergy continue to benefit from a housing allowance that allows the exclusion of lodging expenses from income tax. When properly designated, a member of the clergy pays no income tax on his/her housing allowance (within certain limits.) Housing allowance, however, is reportable and taxable for self-employment tax. In some circumstances, even retired clergy can qualify for a housing allowance.

Social Security Participation: In limited circumstances, ministers can elect out of social security. All clergy, even those not electing out, are considered self-employed for purposes of paying into the social security system. No social security is withheld and matched on clergy pay, even for those receiving a Form W-2.

Earnings for Independent Ministry: Clergy regularly receive honorariums or fees for providing additional services, including weddings, funerals, baptisms, and other speaking engagements. Compensation from self-employment activities is reportable on Schedule C. Computing SE income can be the most challenging aspect of ministerial returns. Here, additional income is reported and related expenses are deducted.

Listen as Elaine Sommerville, CPA, Shareholder at Sommerville & Associates, explains the many facets of clergy taxation, including properly designating and reporting housing allowances, determining worker classification for purposes of employee or contractor treatment, deducting expenses, and differentiating non-taxable gifts from taxable income.

READ MORE

Outline

  1. Who is a minister?
  2. W-2 or independent contractor
  3. Housing allowance
  4. Forms of income including gifts and honorariums
  5. Fringe benefits
  6. Retirement considerations

Benefits

Our speaker will review these and other notable issues:

  • Who is a minister for tax purposes?
  • What are deductible housing costs for clergy?
  • What income or benefits are taxable to ministerial employees?
  • How to properly prepare a clergy employee's Form W-2

Faculty

Sommerville, Elaine
Elaine Sommerville, CPA

Shareholder
Sommerville & Associates

Ms. Sommerville is licensed as a certified public accountant by the State of Texas. She has worked in public accounting...  |  Read More

Live Webinar

Buy Live Webinar
Includes Early Discount Savings of $50 (through 03/27/20)
CPE credit processing is available for an additional fee of $39. CPE processing must be ordered prior to the event.
See NASBA details.

Live Webinar

$147

Live Webinar & CPE Processing

$186

Buy Live Webinar & Recording
Includes special savings of $200 (through 03/27/20)

Live Webinar & Download

$194

Live Webinar & DVD

$194 + $19.45 S&H

Other Formats
— Anytime, Anywhere

Includes Early Discount Savings of $50 (through 03/27/20)

Download

48 hours after event

CPE Not Available

$147

DVD

10 business days after event

CPE Not Available

$147 + $19.45 S&H