The greatest area of difficulty in a minister’s tax filing is his or her dual status, according to Lee Wright, state missionary in the office of LeaderCare and church health at the Alabama Baptist State Board of Missions (SBOM). A minister is an employee for federal income tax purposes and self-employed for Social Security taxes, Wright explained.
During the five conferences on tax preparation for ministers Wright conducted in February, he said ordained ministers should:
• be given a W-2 form from the church rather than a 1099,
• report any employee unreimbursed expenses the minister has on Schedule A,
• note additional miscellaneous income such as honoraria on Schedule C
• and determine Social Security and Medicare taxes on Form SE. (continued…)
Read the full story from The Alabama Baptist Newspaper – http://www.thealabamabaptist.org/sbom-holds-tax-preparation-conferences-to-help-ministers/