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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Volunteer
Expert: John L. Tidwell
Date: 8/27/2008
Subject: Volunteer
Question
Oregon state has an exclusion for volunteers whom donates service for no remuneration or without expectation or contemplation of remuneration for services performed for a religious entity. The volunteer then received a gratuity payment of $1000. I know that this is not considered wages for FUTA due religous wages being excluded from FUTA, If the Church paid a $1000 gratuity under the oregon expemtion guidelines above, what is the federal impact? W-2? 1099? Gift? Oregon is saying its exempt from payroll however what is the federal reply?
Answer
Brian:
Under federal it is wages, I find no exclusion for income tax purposes. However, if its a gift it is not reportable. However, no one is required to perform a service if its a gift.
let's for the sake of argument say that 1/2 the recipients did not show up and donate any time got a gift. The argument could be made that it is gifts. However, if the only one who receive a "gift" donates time before receiving the gift it loses it color as a gift.
That would be my approach at analyzing the problem to determine if its income or if its a gift it can not be both.
John
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