Church Pastor Financial Benefits and Tax Considerations
Explore the various financial benefits and tax implications for a church pastor, including cash salary, housing allowance, retirement contributions, medical insurance premiums, and more. Learn how to navigate these components effectively for tax compliance and optimal financial management.
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Presentation Transcript
2023 Fact Pattern Fact Fact Amount Amount $45,600 A Cash salary paid (should agree to Benefits Statement and include Moving Expenses paid by the church) B Cash housing allowance (should agree to Benefits Statement) C UMPIP 403(b) pre-tax contribution by pastor D Pastor s medical insurance premiums (e.g., enrolled in Family 3 plan) if church has active Internal Revenue Code Section 125 Plan E HSA Amounts withheld from pastor s paycheck F Parsonage/housing allowance exclusion per resolution G HSA Deposits to pastor s HSA account by church via West Ohio Conference to pastor Paid $12,000 $4,000 $4,632 Withheld from paycheck pastor s $2,000 $15,000 $2,000 significant tax items H Imputed life insurance income in excess of IRS allowance ($100,000 coverage, $50,000 allowed). Imputed income based on employee age, see IRS table in Publication 15-B under Group Term Life section. Example age = 56 yrs $258 Other
Example 2023 Clergy W-2 School District Income Tax is reported in Box 19; District name and number in Box 20
