W-2 for pastors question

Discussion in 'Pastoral Ministries' started by GBC Pastor, Feb 6, 2010.

  1. GBC Pastor

    GBC Pastor
    Expand Collapse
    New Member

    Joined:
    Nov 20, 2009
    Messages:
    254
    Likes Received:
    0
    Not sure if this is the right category for this post or not but here goes:

    I just recently took a new church as pastor. I was given my tax information the other day at church and discovered I was given a 1099 MISC by my church treasurer. I have always received a W-2 at the other churches I have pastored. Is a 1099 MISC the proper form or not? I thought maybe some of you pastors might have encountered this before. Thanks for any input.
     
  2. rbell

    rbell
    Expand Collapse
    Active Member

    Joined:
    Jan 16, 2006
    Messages:
    11,103
    Likes Received:
    0
    Unless there's info of which I'm unaware, I believe you should have received a w-2.

    Pet peeve of mine: often times, churches are absolutely clueless about these matters. I've had two churches in my ministry career that have absolutely butchered their resposibilities. The first time cost me...and dearly. The second time, I was smarter, and I fussed about it. The response, a "don't worry about it, it's no big deal" was met with, shall I say, an animated response from me. :eek:

    Good luck with all that.
     
  3. pocadots1990

    pocadots1990
    Expand Collapse
    Member

    Joined:
    Jan 12, 2007
    Messages:
    284
    Likes Received:
    0
    You are suppose to receive a W2 not a 1099-MISC. Go to the IRS website and type in the search area for clergy taxes. Also, I got some helpful information from this website http://www.ssfoundation.net/.

    Often the church is clueless on what to give the pastor and they need to be taught.

    When I first took this pastorate position, I checked into what I was responsible for concerning taxes and had to teach it to the leaders of the church and ultimately to the church.
     
  4. GBC Pastor

    GBC Pastor
    Expand Collapse
    New Member

    Joined:
    Nov 20, 2009
    Messages:
    254
    Likes Received:
    0
    Ok. Here is an additional question. If they have already given me a 1099 MISC is it much difficulty in the church giving me a W-2 instead?
     
  5. pocadots1990

    pocadots1990
    Expand Collapse
    Member

    Joined:
    Jan 12, 2007
    Messages:
    284
    Likes Received:
    0
    It shouldn't be. Tell them you need a W-2 also, they are required to complete a W-3 form as well. It is better to get it done right on the front end, than to get messed up on the back end of things.
     
  6. Zenas

    Zenas
    Expand Collapse
    Active Member

    Joined:
    May 7, 2007
    Messages:
    2,640
    Likes Received:
    6
    As a rule, ministers are considered self employed for the purpose of having Social Security and Medicare withheld from their wages (a stupid rule in my opinion but the IRS says that is the way it should be). If Social Security and Medicare is being withheld, the employer must file a W-2 for that employee. If it is not being withheld, you look to whether the minister is an employee or an independent contractor. Employees are expected to be on the job on a fairly regular schedule. Independent contractors set their own hours and pay most of the expenses connected with their work. For more information on the distinctions, see here: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

    Employees always get W-2's. Independent contractors always get 1099's, unless for some strange reason Social Security is being withheld.
     
  7. Steven2006

    Steven2006
    Expand Collapse
    New Member

    Joined:
    Jun 29, 2006
    Messages:
    2,065
    Likes Received:
    0
    The biggest difficulty is obviously they haven't been withholding and paying the proper taxes on your income throughout the year.
     
  8. exscentric

    exscentric
    Expand Collapse
    Active Member

    Joined:
    May 24, 2004
    Messages:
    4,253
    Likes Received:
    16
    Just asked my wife and Zenas and steven 2006 are probably right. She is a revenue (state) agent. She thinks that withholding can be done if requested but usually the 1099 is used so the employer doesn't have to.

    Are there withholding figures on the form? Are there amounts there? would be the key it looks like.
     
  9. Zenas

    Zenas
    Expand Collapse
    Active Member

    Joined:
    May 7, 2007
    Messages:
    2,640
    Likes Received:
    6
    You can report withholding of income taxes on the 1099, just not Social Security and Medicare. However, if you get a 1099 you report your income on Line 12 of the 1040 (as opposed to Line 7 for the W-2). You are also subject to the self employment tax and must file Schedule SE along with the 1040.

    As for changing from one form to another once it has been done, you must first amend the form you reported on by "zeroing" it out. Then file the correct form.
     
  10. GBC Pastor

    GBC Pastor
    Expand Collapse
    New Member

    Joined:
    Nov 20, 2009
    Messages:
    254
    Likes Received:
    0
    Thanks for all of the help. I was having a fit trying to get this figured out with my TurboTax program. I have a form 4361 exemption that wasn't being recognized because of the 1099. I have spoken with the church treasurer who says he will take care of it, and get me a W-2.
     

Share This Page

Loading...