My church gave our pastor a cash gift as a love offering. Does this have to be included on the W-2?

If cash is paid to the pastor through a love offering or other gift or bonus paid through the church, it is taxable income to the pastor and should be included on the W-2. This is still the case even when giving the pastor a gift card for any amount in lieu of cash. If a church member gives a gift directly to the pastor and it does not go through the church, then it does not go on the W-2 from the church but should be evaluated by the pastor and member to make sure proper gift tax requirements are followed where applicable. Click here for more information on gift taxes from the IRS website.