Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Catholic Diocese paid Father's 6 mo. sabbatical on W-2 and…

Catholic Diocese paid Father's...

Catholic Diocese paid Father's 6 mo. sabbatical on W-2 and withheld Federal Income Tax. Are these wages subject of S-E tax same as

Accountant's Assistant: The Expert will know how to help. Please tell me more, so we can help you best.

Are these wages paid for sabbatical subject to S-E tax?

Accountant's Assistant: Is there anything else important you think the Expert should know?

The Father pays S-E tax on Wages reported on W-2 from the Church.

Show More
Show Less
Ask Your Own Tax Question
Answered in 14 minutes by:
10/3/2017
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,799
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified

Hello. Thank you for choosing this Q&A service for assistance. My name is Angela. I will be assisting you.

Issue: Catholic Diocese paid Father's 6 mo. sabbatical on W-2 and withheld Federal Income Tax.

Issue A1: Federal tax was not supposed to be withheld. SEE BELOW:

--------------------------

Whether they are classified as employees or as self-employed for federal income tax purposes, clerics are exempt from federal tax withholding.

REFERENCE SOURCE:

https://www.journalofaccountancy.com/issues/2004/oct/taxplanningforservantsofgod.html

The wages are subject to SE tax. SEE BELOW:

----------------------------

The following income is included in the SE tax calculation on Schedule SE:

  • Salaries and fees for your ministerial services
  • Money for marriages, baptisms, funerals, masses, etc.
  • The value of meals and lodging provided to you, your spouse, and your dependents
  • The fair rental value of a parsonage (including the cost of furnished utilities) or the rental allowance (including an amount for utilities)
  • Any amount a church pays toward your income tax or SE tax, other than withholding the amount from your salary.

Clergy housing is only included as income when determining your self-employment taxes, not when calculating your federal income tax.

You aren’t required to pay SE tax when any of the following applies:

  • You’re a member of a religious order that has taken a vow of poverty.
  • You have requested, and the IRS has approved, an exemption from self-employment tax.
  • You are subject only to the social security laws of a foreign country under the provisions of a social security agreement between the United States and that country.

REFERENCE SOURCE:

https://ttlc.intuit.com/questions/1901472-is-my-clergy-income-subject-to-the-self-employment-tax

If the above information clarifies matters for you, I ask that you please take the time to scroll to the top of the page and select 3 or more stars to positively rate my response so that I can receive credit for assisting you. A 5 star rating is greatly appreciated. Thank you in advance.

Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,799
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified
Tax.appeal.168 and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,799
4,799 Satisfied Customers
Experience: 3+ decades of varied tax industry exp. Tax Biz owner

Tax.appeal.168 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
We have just hired an -vocational ordained minister for our
We have just hired an bi-vocational ordained minister for our church for $40,000 per year. This includes a $15,000/year housing allowance. He would like for us to withhold taxes from his monthly check… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,799 satisfied customers
I had an employee last year who received disability pay
I had an employee last year who received disability pay through Aflac. The employer paid the full premium. FICA tax has been paid by the employee and employer for 2017 for the first 6 months. The last… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Pastor Sabbatical Income - When do I report Pastor
Pastor Sabbatical Income - When do I report Pastor Sabbatical Income for reimbursed travel expenses. The sabbatical is scheduled for July 2018, but we have paid some deposits on travel arrangements. D… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Catholic Diocese paid Father's 6 mo. sabbatical on W-2 and
Second opinion] Catholic Diocese paid Father's 6 mo. sabbatical on W-2 and withheld Federal Income Tax. Are these wages subject of S-E tax same as… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Catholic Diocese paid Father's 6 mo. sabbatical on W-2 and
Second opinion] Catholic Diocese paid Father's 6 mo. sabbatical on W-2 and withheld Federal Income Tax. Are these wages subject of S-E tax same as… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I work for a tennis club. I pay taxes federal and state
I work for a tennis club. I pay taxes federal and state taxes. I also play the organ for the Catholic Church. I also pay federal tax, but no state tax. I also play the organ for second Catholic Church… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
I work in NY and live in NY City, my company Based in MO set
I work in NY and live in NY City, my company Based in MO set me up with MO taxes for my work state. How do I file for 2015? I did not complete a NY W4, withholding based on my federal W4. MO and St Lo… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am a children's Pastor and my church has decided to pay me
I am a children's Pastor and my church has decided to pay me $100.00 a month. What should I save for taxes on that? Monica… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
To expert in international tax matter: First tax return of a
To expert in international tax matter: First tax return of a China national who arrived in the United States in March 2014 with H1B visa. Article 19 of China-US treaty exempts wages from federal incom… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
One of our employees received sick pay and disability from
One of our employees received sick pay and disability from his union all year 2014. We have to give him a W/2 for 2014. Is all the sick pay and disability taxable to the employee. Does the whole amoun… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Do full time pastors recieve a w2 or 1099. Are they subject
Do full time pastors recieve a w2 or 1099. Are they subject to FICA. How is their housing allowance taxed.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Not an american citizen, I lived and work in the US some years
Not an american citizen, I lived and work in the US some years ago and have maintained a checking account with a debit card and 2 different credit cards from 2 different american banks. Now living in … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Im clergy, with a housing allowance of 1600 per month. My
I'm clergy, with a housing allowance of 1600 per month. My w2 reflects this as wages because we wanted to pay FICA on it. Do I have to report this as wages in my return?… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
For several years, the ministers of our church have been treated
For several years, the ministers of our church have been treated as common-law employees and therefore, have received a Form W-2 at the end of each year for the wages they earned (does not include the… read more
Stephanie B.
Stephanie B.
Accountant
Master's Degree
451 satisfied customers
A minister has a W-2 with wages of $59,223 and income tax withheld
A minister has a W-2 with wages of $59,223 and income tax withheld $9,100. No Social Security or Medicare Wages. No exemption from SS has been claimed. Is this to be reported as SE income? If so, what… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
As a non-profit (501(c)3) church we issued our (self-employed)
As a non-profit (501(c)3) church we issued our (self-employed) pastor a 2009 w-2 with $3000 in box 14 as medical allowance. He has medical receipts for $4900 and would like that $3000 number changed t… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Partnership making payments to individual partners via payroll.
Partnership making payments to individual partners via payroll. Federal and SS taxes are withheld. These are guaranteed payments and income should not have been reported on W2...How do I handle 1065 a… read more
Bizhelp
Bizhelp
Certified Public Accountant (CPA)
Bachelor's Degree
638 satisfied customers
My company relocted me from Virginia to Missouri this year.
My company relocted me from Virginia to Missouri this year. As expected, I received two W-2's. However here is my W-2 question/problem: When I add up the two Box 16's, the total amount exceeds my Box … read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x