Page 71 - Wages, Salaries and Other Earnings

Special Rules for Certain Employers
Clergy
 A pension or retirement pay
for a member of the clergy is
usually treated as any other
pension or annuity. It must
be reported on lines 5a and
5b of Form 1040 or 1040-SR.
 Generally, if you’re a member of the clergy, you must include in your income
offerings and fees you receive for marriages, baptisms, funerals, masses, etc.,
in addition to your salary. If the offering is made to the religious institution, it
isn’t taxable to you.
 If you’re a member of a religious organization and you give your outside
earnings to the religious organization, you must still include the earnings in
your income. However, you may be entitled to a charitable contribution
deduction for the amount paid to the organization. See Pub. 526.
• Special rules for housing apply to members of the clergy.
Under these rules, you don’t include in your income the
rental value of a home (including utilities) or a designated
housing allowance provided to you as part of your pay.
Pension However, the exclusion can’t be more than the reasonable
pay for your services.
• If you pay for the utilities, you can exclude any allowance
Housing designated for utility cost, up to your actual cost. The
home or allowance must be provided as compensation for
your services as an ordained, licensed, or commissioned
minister.
• However, you must include the rental value of the home
or the housing allowance as earnings from self-
employment on Schedule SE (Form 1040) if you’re subject
to the self-employment tax.
• For more information, see Pub. 517, Social Security and
Other Information for Members of the Clergy and
Religious Workers. .