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Tax Law (Questions About Taxes)/medical expense reimbursement


A church receives support funds for a missionary and puts it into a separate fund.  The church also supports this missionary and gives him a W-2 as an employee.  The church has a healthcare reimbursement account to pay for its employees' medical bills not covered by insurance.  Can the church also reimburse this missionary for his medical bills but pay it out of the separate fund that is set up for him?  He does not want to have funds of the church to be used for his reimbursements.


Thanks for your question.

My answer is a qualified "yes." It is not important that where the funds come from, as long as it is through the church.

You do need to be certain that the reimbursement plan for him is. The same for allemp,ones. In addition, you need to make certain that the plan is allowed under current law.

Hope this helps.

John Stancil, CPA  

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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