Q: A college student from our church will be a volunteer counselor at a Christian camp this summer. Our church will give the camp $600 from our mission budget and give him $900 from the mission budget as a gift for his service. He is not an employee of the church. Is there a tax reporting requirement for this gift?
A: The amount paid directly to the student is considered mission support for the student’s activities. Mission support of individuals is required to be reported on Form 1099-MISC if it is $600 or more.
The amount paid to the camp might be reported, depending on the intention of the payment. If the payment is intended to help cover the student’s expenses, then it is reported on the student’s Form 1099-MISC issued by the church along with the $900. If the amount is intended to be a contribution to the camp, unrelated to the student’s service, then it is not reported on the student’s Form 1099-MISC issued by the church.
For additional information on the proper use of Form 1099-MISC, see chapter 4 in Elaine Sommerville’s book, Church Compensation.
This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."
Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.