Taxes

FAQ: Taxes

• Should we include direct disbursements from a church member’s IRA account on their year-end giving statement?
• Can mileage from the parsonage or my pastor’s home to the church be reimbursed as business mileage?
• Should love offering contributions be included on the church member’s giving statement for tax reporting?
• How does our church determine what mileage should be reimbursed for our pastor?
• Is my church exempt from paying state sales tax?
• Can my church receive a refund of sales tax paid when it is part of a reimbursement to someone for making a purchase on behalf of the church?
• Can my church receive a refund of sales tax paid on purchases in North Carolina?
• Can our student pastor be reimbursed mileage expenses for traveling back and forth to school? Would that be a legitimate reimbursement as part of their travel budget?
• I’ve heard I can apply to be exempt from self-employment tax as a minister. Does the NC Conference recommend this?
• What should our church include in the year-end statements we send to our donors?
• Do we need to have W-9 forms on file for all of our vendors?
• How does my church determine whether to treat a worker as an employee versus independent contractor, thus receiving a W-2 or a 1099, respectively?
• Our members have given tithes and offerings in January that are dated for December of the previous year. Should these contributions be included in last year’s tax statement?
• My church gave our pastor a cash gift as a love offering. Does this have to be included on the W-2?
• Should our church’s organist be considered an employee or a contractor? Do we have to report his income on a 1099 or W-2?
• My pastor says that I should give him a 1099 for his salary paid by the church instead of a W-2. Is that correct?
• My church only has a W-2 to fill out for my pastor and a 1099 for our janitorial service. I do not want to buy a whole pack of forms to get just one of each. Is there a better way to do these?
• As a church employee, can I have my tithes withheld as pre-tax deduction and not have to pay Federal tax or Social Security tax on the amount set aside for tithes?
• Can a minister assign earned income to a charity and avoid paying taxes on it?