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New Member
posted Feb 2, 2020 5:30:55 AM

I have a church i am the only owner no paid employees

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2 Replies
Expert Alumni
Feb 3, 2020 2:36:27 PM

Do you have a specific question or questions regarding your church and taxes

Expert Alumni
Feb 3, 2020 6:34:19 PM

I have included some general information on your situation.  Please submit another question if you need additional information and guidance.

 

Regardless of whether you're a minister performing ministerial services as an employee or a self-employed person, all of your earnings, including wages, offerings, and fees you receive for performing marriages, baptisms, funerals, etc., are subject to income tax.  According to IRS guidelines, a pastor is considered self-employed if a church does not have control over the pastor's employment status or activities. When a pastor is given a housing allowance or provided a parsonage, the IRS does not require this compensation to be reported as taxable income.

 

Churches are not required by law to withhold income taxes from their ministers' pay, even if their ministers are employees for income tax purposes. ... Most churches are required to withhold income taxes from non-minister employees.

 

Church employee income is wages you received as an employee (other than as a minister, a member of a religious order, or a Christian Science practitioner) of a church or qualified church-controlled organization that has a certificate in effect electing an exemption from employer social security and Medicare taxes.