A missionary receives a Form 1099-MISC from a church for which he provided no direct services during the year. His mission agency issues him a Form W-2 or Form 1099-MISC for his full missions support. Is the Form 1099-MISC income reported by the church also taxable?
It is apparent that the church in the question above distributed money to the missionary, otherwise no Form 1099-MISC would have been issued. There are three likely explanations for a situation of this nature:
The first possibility takes place when the missionary receives income from a supporting church which is remitted directly to his mission agency. The agency will then report the income to the missionary on a Form W-2 or Form 1099-MISC.
The second possibility is similar to the first, except the missionary is the one who receives the money, not the mission agency. However, the missionary does report the income to the agency which will, in turn, report the earnings to him or her on Form W-2 or Form 1099-…