W-2 for pastors question

Unless there's info of which I'm unaware, I believe you should have received a w-2.

Pet peeve of mine: often times, churches are absolutely clueless about these matters. I've had two churches in my ministry career that have absolutely butchered their resposibilities. The first time cost me...and dearly. The second time, I was smarter, and I fussed about it. The response, a "don't worry about it, it's no big deal" was met with, shall I say, an animated response from me.

Good luck with all that.

 

You are suppose to receive a W2 not a 1099-MISC. Go to the IRS website and type in the search area for clergy taxes. Also, I got some helpful information from this website http://www.ssfoundation.net/.

Often the church is clueless on what to give the pastor and they need to be taught.

When I first took this pastorate position, I checked into what I was responsible for concerning taxes and had to teach it to the leaders of the church and ultimately to the church.

 

It shouldn't be. Tell them you need a W-2 also, they are required to complete a W-3 form as well. It is better to get it done right on the front end, than to get messed up on the back end of things.

 

As a rule, ministers are considered self employed for the purpose of having Social Security and Medicare withheld from their wages (a stupid rule in my opinion but the IRS says that is the way it should be). If Social Security and Medicare is being withheld, the employer must file a W-2 for that employee. If it is not being withheld, you look to whether the minister is an employee or an independent contractor. Employees are expected to be on the job on a fairly regular schedule. Independent contractors set their own hours and pay most of the expenses connected with their work. For more information on the distinctions, see here: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

Employees always get W-2's. Independent contractors always get 1099's, unless for some strange reason Social Security is being withheld.

 

The biggest difficulty is obviously they haven't been withholding and paying the proper taxes on your income throughout the year.

 

Just asked my wife and Zenas and steven 2006 are probably right. She is a revenue (state) agent. She thinks that withholding can be done if requested but usually the 1099 is used so the employer doesn't have to.

Are there withholding figures on the form? Are there amounts there? would be the key it looks like.

 

You can report withholding of income taxes on the 1099, just not Social Security and Medicare. However, if you get a 1099 you report your income on Line 12 of the 1040 (as opposed to Line 7 for the W-2). You are also subject to the self employment tax and must file Schedule SE along with the 1040.

As for changing from one form to another once it has been done, you must first amend the form you reported on by "zeroing" it out. Then file the correct form.