Love Offering For Visiting Songwriter

Question regarding a love offering for a visiting songwriter:

We are having a concert in which a songwriter (not an employee, or having any affiliation with our church) will be singing. In the advertising of the concert, it was stated that a love offering will be taken.

Therefore, in comparing with IRS regulations: it was solicited and it will NOT be spontaneous in nature. So, will it be taxable income to the songwriter and a Form 1099-Misc will need to be issued if the offering is over $600? Also, will it be a tax deduction to the donors?

vickey's reply

You are correct. If it is processed through your church and a church check is issued, it would be taxable income to the recipient.

If it is $600 or more, a 1099-Misc should be issued in January.

Also...

...always remember to get a completed W-9 from the recipient even if you don’t think the offering will be over $600. The $600 rule is for the entire year...so if a recipient received $300 from your church when they visited your church in April and then received another $350 in December of the same year...you would be required to send them a 1099-Misc.

Additionally: even though you do not send 1099-Misc to corporations...have all independent contractors fill out a W-9 even if you think they are incorporated. If they are, there is a place on the W-9 for them to indicate they are incorporated.

If it was specified for that individual, it would not be tax deductible to the donors.