You are here:

Nonprofit Law/Love Offerings on 1099 Misc

Advertisement


Question
Our church have full-time preachers, they are not employee (No W2s) and not on regular salary.  They receive monthly Love Offerings and medical compensation from church general fund (these funds are tax deductible for the church members who made the donations).


Q. Does church need to issue 1099 Misc for all the monthly love offerings and medical compensation at year end to preachers ?

Thanks !!

Answer
See IRS Publication 517 "Social Security and Other Information
for the Members of the Clergy and Other Religious Workers" at:
http://www.irs.gov/pub/irs-pdf/p517.pdf
starting on page 8 is "Income tax: Income and Expenses"

It appears from what you wrote that the preachers are members of the clergy. If not, let me know.  In any case, it appears that the church is giving the funds only because of the work of those two and, therefore, the value is included in Form 1099-Misc that would need to be filed by the church if the value annually is $600 or more.

See  http://www.irs.gov/pub/irs-pdf/i1099msc.pdf which is the
IRS' instructions for form 1099-Misc.

The IRS Publication 15-B discusses fringe benefits which are taxable, as what you mentioned, and is
available at http://www.irs.gov/pub/irs-pdf/p15b.pdf

Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com

Nonprofit Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Harvey Mechanic

Expertise

I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


©2016 About.com. All rights reserved.