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Missionary Honoria--Not Administered by Agency


Question:

I am working as a missionary in West Africa and am considered an unordained employee of my missions agency. I receive a Form W-2 each year to file my taxes. This year, while I was on home service, my home church took an extra offering and decided to give it to me as a gift rather than send it to our main office. Is this taxable and, if so, where do I report it on my Form 1040?


Answer:

Yes, this gift is considered taxable compensation for your services as a missionary. You should report it on a Schedule C as self-employment income.


The members of my Federal Taxation I class at Maranatha Baptist Bible College in Watertown, Wisconsin have taken on the challenge of study and research to answer posted questions. Jeremy Mattson of Green Bay, Wisconsin gets credit for this one.

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