No, it will not require an explanation until and unless the IRS or state request it, and even if they do, you have taken the correct action to report the income and pay any personal income tax as well as self employment tax required.
Don't be afraid to make sure the church does report the correct income and withholding on the W-2 for 2024. Many get confused about how it should be handled.
- A pastor is a common law employee of the church. This means they do NOT withhold any social security or medicare taxes. If they choose to help you out by taking additional withholding to help you cover that they can add it to any other federal withholding on the W-2.
- No figures should be in boxes 3, 4, 5, or 6.
- Wages in box 1 and federal withholding in box 2.
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