Clergy

1.0 CPE CREDIT

Taxation of clergy can be difficult to understand, advise upon, and properly report. While most religious organizations are tax-exempt, the individual minister or clergy member is usually not. To add further complication, clergy may have several potential sources of income subjecting them to:

• Paying estimated tax payments, even though they are an employee
• Dealing with employee business expenses
• Explaining how they spent money on their housing
• Addressing whether they participate in the Social Security System

Proper information reporting on the part of the organization is equally important. We will include examples explaining proper reporting of various forms of clergy compensation.

Last reviewed for accuracy: January 2023.