​3 Tax Tips for Clergy Members

Members of the clergy have tax requirements that look a little different than most people’s.

For ministers, priests, pastors, and other religious leaders, we put together a quick list of things to keep in mind now so that next year’s tax time isn’t a headache.

• Wages on Your W-2: The wages on your W-2 are subject to ordinary income tax and self-employment tax.
• Housing Allowances: Housing allowance are subject to self-employment tax only.
• Employee-Related Expenses: As of 2018, out-of-pocket employee expenses are no longer deductible.

So, as a clergy member, you’ll still receive a W-2, but Social Security and Medicare taxes aren’t withheld. However, you’ll still need to pay Social Security and Medicare by filing Form 1040 (Schedule SE), Self-Employment Tax.

Make sure to have enough house expenses to offset your housing allowance. If you don’t have enough expenses, your excess allowance is considered income and is subject to ordinary income tax.

You’re probably better off claiming the standard deduction. For single filers, that’s $12,200, and for those who are married and filing jointly, that’s $24,400.

Here’s a PDF you can print out and keep on hand as a reminder of what you need to know come tax time.

If you have additional questions about your taxes or other financial needs, let us know how we can help.