Question: Sue—“I’m planning on issuing my pastor a 1099-MISC for this year and I understand that I can't include Housing Allowance, but what about the retirement that church paid monthly on behalf of my pastor? And the mileage reimbursement we've paid him? Do I have to report all these on 1099?” Answer: Sorry, but it’s a bad idea all around. Unless your pastor is an itinerant pastor serving multiple congregations, it’s virtually impossible to classify him as an independent contractor for whom a Form 1099-MISC is prepared. Further, if the church provided him a retirement plan, then that settles it right there. There is no church retirement plan in the Internal Revenue Code for independent contractors. Pastors receive Form W-2. Housing Allowances are noted in the memo box – Box 14. And the retirement plan reporting depends on the type of plan. Mileage reimbursement? it depends on whether it’s an accountable or a non-accountable plan. Sorry to say this, but Sue likely needs pr...
This blog posts answers to questions given to us by ministers and others serving in Christian ministries advancing the gospel of Jesus Christ. It also discusses other financial topics that those in gospel ministries face. We trust the information provided can be helpful to you.