September 08, 2016

Ministers' Charitable Contributions Donated Pretax as Payroll Deductions

Question:

Can a minister make his contributions pretax through payroll?

Answer:

No, charitable donations may not be taken as pretax through payroll. According to the IRS Minister Audit Technique Guide, “Ministers' contributions to the church are not deductible as business expenses. ...They may still be deducted as contributions on Schedule A, but they may not be used as a business expense to reduce self-employment tax.”




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