Will Form 1120 C Compensation 2023-2024

While I'll receive income and pay taxes, there are some distinctive aspects of both for clergy. In this presentation, we will explore some of the important things that clergy should know about their income and tax responsibilities. Please note that the information contained in this presentation does not constitute tax advice. Individuals should consult with their individual tax or financial advisors when making decisions and preparing their taxes. For IRS purposes, there are several factors that help determine eligibility. Being ordained, licensed, or commissioned is the most important factor. Other factors include administering or being able to administer some sacraments, conducting worship services, and being involved in the control, conduct, or maintenance of a religious organization and its integral agencies. If you are unsure if you meet these criteria, consult with a tax professional. Whether you are called by a congregation, appointed by a bishop, or hired by a non-traditional ministry setting, you need to understand the compensation package you receive. Understanding your compensation allows you to make decisions that will affect your taxable income. Some common components of clergy compensation include salary. Some denominations have minimum salary standards or other rules that apply to salary. Be sure you are familiar with your denomination's policies. Other components may include a housing allowance, health benefits, pension or retirement benefits, death and disability benefits, vacation and sick days, expense reimbursement, flexible spending accounts, and health reimbursement accounts or other health savings accounts. Usually, all items are reviewed annually and some, such as a housing allowance, must be reviewed and approved annually. Clergy are responsible for paying applicable federal and state taxes, along with federal income tax payments. Social Security and Medicare taxes also need to be paid. However, there are important differences in how clergy are treated for federal income tax purposes compared to Social Security...