Minister and Church IRS Filing Requirements

by Stated Clerk Randy Moody

Minister tax filing requirements can be confusing and difficult to understand. Unfortunately, not all accountants understand clergy tax requirements either! I know a teaching elder who found himself in court over Social Security taxes because he filed his taxes improperly. As my friend in Texas discovered, it can be costly if taxes are not properly filed.

The Board of Pensions provides helpful resources for ministers and congregations on their website, including an annual publication titled Tax Guide for Ministers. The BOP also provides congregations the publication Federal Reporting Requirements for Churches. You may need to log in to Benefits Connect to access them. The following excerpt from the guid for ministers illustrates the uniqueness of clergy tax filing requirements:

“Ministers have a dual tax status. For federal income taxes they ordinarily are employees, but for Social Security they are self-employed with regard to services performed in the exercise of their ministry.”  -Tax Guide for Ministers

The guide explains how the self-employed status requires ministers to file Form SE and pay estimated taxes using Form 1040-ES. Quarterly payments are due each tax year, adjusted a day or two for holidays and weekends:

• April 15 (first quarter)
• June 15 (second quarter)
• September 15 (third quarter)
• January 15 (fourth quarter

See the tax guides provided by the Board of Pensions for more details regarding this and many more important tax requirements for ministers and churches.

This article is not legal advice, but all members of PRP are encouraged to review your tax status to ensure you are following all tax filing requirements. Pastors, Clerks, and Treasurers are also encouraged to use these resources to review how congregations report income to the IRS.