Discussion:Church Treasurer
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| 10 March 2007 | |
| I have a new client that was elected treasurer of his church.He was paid 2500.00 and given a 1099-misc. with the 2500.00 shown in box 7. My question is, should this be shown on sch c and SE be paid on it or shold it be shown on 1040 line 21 as misc. income? | |
Bushmaster (talk|edits) said: | 10 March 2007 |
| Sounds like a w-2 issue instead. But this is earned income and if he has expenses, put on schedule C, else other income subject to SE. | |
| March 10, 2007 | |
| Wow, I'm thinking line 21 for this. Unless he's in the business of being church treasurer's this sounds more like a Director's Fee...He is a corp officer, so it fits. | |
| 10 March 2007 | |
| He is not in the business of being a church treasurer. He was elected by the members of the church. Would I encounter any problems if I entered the amount on line 21 of the 1040, when it is shown in box 7 on the 1099-MISC? Any help on this is greatly appreciated. | |
| 10 March 2007 | |
| I agree with JR. As treasurer of a church, he is on the Corporate documents with the state and he is a director...no worries MOR | |
Msmith7305 (talk|edits) said: | 10 March 2007 |
| Be aware that, according to the old IRS Publication 533, director's fees are specifically included in items subject to SE tax. | |
| 10 March 2007 | |
| I have tried to locate Pub. 533 for 2006 and cannot find it. I have a copy of the old one. Has it been replace by another number of Pub.? If it has does anyone know what the new one is. thanks. | |
Msmith7305 (talk|edits) said: | 10 March 2007 |
| Pub 533 was discontinued in 2006. I have access to 2005 which was last date published. | |
| 10 March 2007 | |
| I believe he would be an employee, not a director.
For a church employee, the church may have elected to to not have their employees covered by social security. If so, he is considered self-employed even though he is an employee. The $2,500 would be subject to self-employment (SE) tax but note he might be eligible to claim an exemption from SE tax. Report the income on Schedule C and SE. | |
| 10 March 2007 | |
| My two cents...three years ago I resigned from being a church Treasurer for 7 years. I was an officer, but also the church's financial admin. I was given a W2 with fed and ss and med taken out. My understanding was, and still is, that the only way you can opt out of SE is if you are ordained or licensed as a minister. | |
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