Are there IRS resources to assist the clergy with their tax status?

IRS resources relating to clergy tax issues and congregation tax issues include:

IRS Publication 517 Social Security and Other Information for Members of the Clergy & Religious Workers
IRS Publication 1828 Tax Guide for Churches and Religious Organizations
Last year the IRS released a Minister Audit Technique Guide. This resource provides insights into how the IRS examiners will review tax returns for clergy if they are audited.

IRS Publication 517 is a very useful reference tool in navigating the maze of IRS regulations that pertain to members of the clergy and religious workers. In this publication you will find step by step instructions on all things pertaining to pastoral tax returns, including:

Personal income tax
Social Security taxes
Self-employment taxes and exemptions
Exemption from FICA taxes
Retirement savings arrangements
Earned income credit and
W-2 information

What is great about this publication is that it includes a comprehensive example of a sample pastor’s return with all the forms filled in. Click on the link below to print a copy of this useful IRS publication.

For more information, go to www.irs.gov and search under clergy tax or similar topics.

Clergy Tax resources from the ELCA Board of Pensions

Another aid is the 2010 Tax Return Preparation Guide for 2009 Returns for Clergy. This is a 78-page document, but is easy to read and understand. It also includes completed examples of the required tax forms and explains in detail how the specific tax rules are applied to clergy. What is unique about this guide is that it goes into detail on each step of each form so it can be used as a reference guide if you need more detail regarding a specific issue or situation. This guide, available from the ELCA Board of Pensions, can be obtained using the following instructions:

Log in to your retirement account at the ELCA Board of Pensions Web site;

Click on Documents and Forms on the bottom left of the page after login;
On the resulting page, click on Miscellaneous Forms at the bottom left; and
On the resulting page, click on 2010 Tax Preparation Guide for 2009 Returns. It is a PDF document you can read online or print out.