January 24, 2013

Form 1099-MISC for Missions Support

Question:

Should the following items be included on Form 1099-MISC?
1. Checks to visiting pastors and missionaries from congregational love offerings 

2. Medical insurance coverage for pastors
3. Mission support from church fund to missionaries 


Answer: 

1. These amounts are reportable on Form 1099-MISC if the total amount given to the non-employee (visiting pastor or missionary) for the year totals at least $600.

2. Medical insurance coverage for pastors (who are properly classified as employees) are not reportable on Form 1099-MISC. For employers filing 250 or more Form W-2s, employee medical insurance is reported as Code DD in Box 12 of the W-2. At least for 2012 (W-2s prepared by January 31, 2013), employers with fewer than 250 employees are not required to report these amounts. IRS Issues Interim Guidance on Informational Reporting of Employer Sponsored Health Coverage
  
3. Mission support paid directly to another 501(c)3 organization (e.g. a mission agency) is not reportable on Form 1099-MISC. However, compensation given directly to a missionary from a church's mission fund is reportable to the missionary on Form 1099-MISC if the amounts total $600 or more for the year. These amounts would be reported on Box 7 of the Form 1099-MISC.

4 comments:

  1. What if the person that we support is in another country? What do we do about their 1099 info

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  2. Situations such as yours are universally dependent on the specific facts and circumstances of each case. Resolution will likely require professional assistance.

    ReplyDelete
  3. If we as a church support several missionaries directly at more than $600 per year, are we REQUIRED by the IRS to file a 1099, or should we only do so if the missionary requests it?

    ReplyDelete
    Replies
    1. See https://www.irs.gov/instructions/i1099msc/
      for instructions regarding requirements to file Form 1099.
      But in general, according to the IRS the payer has responsibility to report payments to nonemployees.

      Delete