Discussion:Clergy SE Tax on Elective 403(b) deferral?
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| Revision as of 18:56, 12 August 2009 JR1 (Talk | contribs) (Rev Ruling 68-39) ← Previous diff |
Revision as of 19:24, 12 August 2009 Jdugancpa (Talk | contribs) (Thanks, JR. Tha) Next diff → |
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| {{ForumReplyPost|UserID=JR1|Date=August 12, 2009|Text=Rev Ruling 68-395 per Worth says that for a minister,they are NOT subject. For laypeople, they are.}} | {{ForumReplyPost|UserID=JR1|Date=August 12, 2009|Text=Rev Ruling 68-395 per Worth says that for a minister,they are NOT subject. For laypeople, they are.}} | ||
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| + | {{ForumReplyPost|UserID=Jdugancpa|Date=12 August 2009|Text=Thanks, JR. That was fast. Never apply logic in trying to determine how taxes work! }} | ||
Revision as of 19:24, 12 August 2009
Discussion Forum Index --> Advanced Tax Questions --> Clergy SE Tax on Elective 403(b) deferral?
Discussion Forum Index --> Tax Questions --> Clergy SE Tax on Elective 403(b) deferral?
| 12 March 2009 | |
| Unless there is something I have missed in the W-2 worksheet, Pro Series is not adding my 403(b) deferral into SE income for the calculation of SE tax for my minister-client. Does this make sense? If it were a non-clergy W-2, the SS/MC wages would be higher by the amount of the deferral. Therefore it makes sense to me that the deferral should be added in when calculating SE tax. I've added that amount onto the SE Adjustments Worksheet to pick it up. Does this make sense? | |
| 12 August 2009 | |
| JR & others, I posted this question during tax season but never received a response. I am doing another pastor and the question arises again. In my estimation, the 403(b) deferral must be added to SE income, since were this any employee other than an ordained minister, the 403(b) deferral would not be a reduction to box 3 or box 5 wages. Would you concur, or am I missing some obscure point relative to ministerial taxation that would allow them to exclude that from SE income? | |
| August 12, 2009 | |
| Let me go see how it handled my wife's! Crud I hope I hope I hope...OK, mine matches what you say, her deferral did NOT get picked up for SE tax. Now, should it? I might not want to know.... | |
| August 12, 2009 | |
| Rev Ruling 68-395 per Worth says that for a minister,they are NOT subject. For laypeople, they are. | |
| 12 August 2009 | |
| Thanks, JR. That was fast. Never apply logic in trying to determine how taxes work! | |
