Background. It is important for church treasurers to know how much taxable income the church is paying a minister so that the correct amount can be reported on the W-2 or 1099 the church issues to the minister. Unfortunately, the concept of "taxable income" is complex and confusing. Church treasurers often issue W-2 or 1099 forms that do not fully reflect all income received by a minister.
Key point. This article focuses on items of taxable income received by ministers that often are overlooked by church treasurers when completing the minister's W-2 or 1099 form. Many of the items summarized below apply equally to non-minister staff members as well.
Assignments of income. Sometimes a minister or other staff member will refuse to accept payment for services rendered. Consider two examples:
• Rev. G conducts services for two weeks at another church whose pastor is on vacation. ...