What you need to know about Clergy Taxes

Albert Einstein was quoted saying, “The hardest thing to understand in the world is the income tax.” Doing income tax as a lay person is feels kind of like defusing a bomb. It’s nerve-racking. The consequences are pretty painful if you make a mistake. Now imagine that instead you’re defusing a bomb while hanging upside down…over a pit of snakes. That’s what clergy taxes can feel like.

The video below is from the clergy tax training for our new clergy. In it, I cover:

  • Housing Exclusion and related expenses
  • Understanding the clergy compensation package
  • How clergy are both employees and self-employed
  • Making tax payments

Useful Links

  2 comments for “What you need to know about Clergy Taxes

  1. Marilyn Perry
    May 24, 2022 at 8:25 am

    Dear Jeff,

    This posting looks excellent. Thank you very much for giving me credit on the housing expense list, I really appreciate that! You will need to mention, though, that I am in the process of retiring and am sending all my clients and anyone who inquires to Connie Buskohl. (Pause for a few tears.)

    Your spreadsheet for estimating clergy taxes looks to be really useful. I did not try it out, and wish I’d thought of doing it this way! Have you updated the numbers in your table tab for 2022? I did not check.

    I am really looking forward to seeing you at Annual Conference this year!

    Marilyn (763) 427-6080

    Like

    • May 24, 2022 at 9:52 am

      Thanks, Marilyn. I did update the table for 2022. I wasn’t sure what would happen with Child Tax Credits. I’ve so much appreciated your work over the years.

      Like

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