hburkholder Posted January 28, 2011 Report Share Posted January 28, 2011 Preparing a ministers return for the first time. TP is a part time licensed minister who received $900 from his home congregation. In addition to this he traveled over the country preaching etc. He was not issued a W2. Does his travel expenses get deducted on form 2106 or on sch.C? Can I use per Diem rates for his overnight expenses or do I need to use actual costs? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 28, 2011 Report Share Posted January 28, 2011 Expenses for his home church would be 2106 expenses, IF he gets a W-2 from them, expenses of his other would be on his Sch C, as would the income. You need to use the Minister's worksheet, which should help you sort it all out properly and get everything to the correct place on the return. Such a small amount from his 'home church' makes me wonder if even they treat him as a W-2 employee, though. If they do not, then put all the income and all the expenses on the Sch C, as he is truly self-employed. The worksheet has a place near the top to link the Sch C to the worksheet. Quote Link to comment Share on other sites More sharing options...
MAMalody Posted January 29, 2011 Report Share Posted January 29, 2011 I would be interested if the $900 from his home congregation was because he was their pastor or only preached a couple of times for them when the pastor was gone. Quote Link to comment Share on other sites More sharing options...
hburkholder Posted January 29, 2011 Author Report Share Posted January 29, 2011 I would be interested if the $900 from his home congregation was because he was their pastor or only preached a couple of times for them when the pastor was gone. Actually his Dad is the pastor of his home church. He only fills in on occasion. Quote Link to comment Share on other sites More sharing options...
OldJack Posted January 29, 2011 Report Share Posted January 29, 2011 Since the church did not treat him as an employee by issuing a W2, it is likely that he is not an employee. Although the IRS position is that all Clergy are employees that is not the actual case for many in certain church faiths. Ask the Clergy if his work was directed and hired by the church as an employee? If neither he or the church considered him as an employee all income and expense should properly be reported on 1040 Sch-C. Quote Link to comment Share on other sites More sharing options...
MAMalody Posted January 29, 2011 Report Share Posted January 29, 2011 In my experience, the clergy that are usually considered to be employees of churches are their pastors and as such receive W-2s. Typically, someone who fills in the pulpit is not normally considered one of the church pastors and receives a 1099 not a W-2. They can be employees if the church hires that way, however, it is not normal. This preacher may need to simply be handled as self-employed with his home church as his tax home, or it could be that he needs to be handled as an intinerate preacher (the same as a truck driver with no tax home). It would, of course, depend on the facts and circumstances of his particular situation. I don't actually think we have enough information to make a determination here. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 31, 2011 Report Share Posted January 31, 2011 http://www.irs.gov/businesses/small/article/0,,id=210018,00.html taxbilly Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.