Accounting Manager

by Lucreetia
(Texas)

The pastor is an employee of the church but he receives donations outside of his W2. Shouldn’t the pastor receive a 1099 as well?

Comments for Accounting Manager

Click here to add your own comments

Giving to a Pastor
by: CPA-CMA-CKA

Just to be clear on gifts to a pastor, the IRS allows gift of up to $16,000 to ANY individual without a tax liability on either the giver or receiver. So, if an individual gives a pastor $1000, it is considered a gift and does not have to be included in the pastor's tax income.
W-2 or 1099...but not Both
by: Vickey

You do NOT want to issue a W-2 and a 1099 to the same individual in the same tax year. It would raise a red flag with the IRS.

How you would "handle" those donations would depend on HOW he received them. If he received them "personally" and they did NOT go thru church records, he is responsible for reporting that "income" on his personal tax return.

If they were received thru the church and ran thru church donation and accounting records ...you would run the "payment" of those donations thru his payroll, so the total amounts would appear in Box 1 of his W-2 along with his regular salary.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.