The Tax Resource Center houses a collection of specialized resources for ministers, church organizations, and members designed to boost awareness and knowledge of specific tax issues, especially those related to tax returns.
Resources for Ministers
This information and advice is specific to the tax situations faced by ministers and other non-lay employees of The Presbyterian Church (U.S.A.).
- Housing Allowance Letter
- Tax Q & As
This letter from the Board's vice president of finance, Michael Fallon, explains an important tax allowance for ministers' housing costs and includes a copy of the Board's annual housing allowance designation.
Popular tax preparation questions and answers for:
Resources for Treasurers/Administrators
A church is a unique entity within American tax law. These resources can help you navigate the complexities of compensation, benefits, and tax reporting.
- Federal Reporting Requirements for Churches
This annual document guides churches through the process of tax reporting on the federal level.
- Reporting Compensation for Clergy
Special rules apply to the reporting of compensation for ordained ministers. For income tax purposes, the Internal Revenue Service (IRS) considers ministers serving churches as employees, while Social Security considers ministers and some commissioned lay pastors self-employed.
- Taxation of Death Benefits
Federal income tax is payable on employer-provided life insurance in excess of $50,000 in term life insurance. These taxes also apply to the Benefits Plan's death benefits. If the value of the member's death benefit coverage exceeds that threshold, taxable income must be imputed by the employer on the member's W-2.
- Tax Q & A
Review these popular tax preparation questions and answers for church treasurers and business administrators.