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

Monday, June 7, 2021

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

Early Registration Discount Deadline, Friday, May 14, 2021

or call 1-800-926-7926
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This webinar will explain the unique aspects of tax return preparation and planning for members of the clergy. Our panel 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 clergy member 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 to pay 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 our panel explains the many facets of clergy taxation, including properly designating and reporting housing allowances, determining worker classification for employee or contractor treatment purposes, deducting expenses, and differentiating non-taxable gifts from taxable income.

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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
  7. COVID-19 relief for nonprofits

Benefits

The panel 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

Hartley, Jean
Jean Hartley
CEO
Hartley Tax & Accounting

Ms. Hartley provides ministers with expert tax consultation concerning ministry tax.  She is a tax accountant...  |  Read More

Additional faculty
to be announced.
Attend on June 7

Early Discount (through 05/14/21)

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend June 7?

Early Discount (through 05/14/21)

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