Do clergy receive special tax treatments?
Do clergy receive special tax treatments?
Yes and No. Clergy receive special tax treatment for the following three topics:
•Ministers pay their own self-employment tax.(Even though ministers can be considered church employees, they are treated as self-employed for Social Security and Medicare tax purposes.
•Ministers can receive a Housing Allowance and/or live in a church provided parsonage. (The value of both of these are excluded from a minister's calculation of income tax...but still subject to self-employment tax)
•Churches cannot withhold Social Security and Medicare tax from a minister's paycheck.
Yes and No. Clergy receive special tax treatment for the following three topics:
•Ministers pay their own self-employment tax.(Even though ministers can be considered church employees, they are treated as self-employed for Social Security and Medicare tax purposes.
•Ministers can receive a Housing Allowance and/or live in a church provided parsonage. (The value of both of these are excluded from a minister's calculation of income tax...but still subject to self-employment tax)
•Churches cannot withhold Social Security and Medicare tax from a minister's paycheck.
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