This lesson focuses on the issue of special tax rules for ministers. You can review the Executive Summary to obtain the key points or read the Weekly Lesson for a more thorough presentation of this topic. Start by completing the following interactive quiz to test your knowledge."
Ruth was recently elected as her church's treasurer. She is unfamiliar with the treatment of ministers for tax purposes. She withholds income taxes and FICA taxes from the wages of the church's senior pastor, and reports the pastor's salary and housing allowance as taxable income on Form W-2. Is Ruth in compliance with the tax law?
Instructions Click on the correct answer for each of the following questions.
Ministers are eligible for the following 4 special tax rules with respect to services they perform in the exercise of their ministry: the housing allowance ...