Taxes
Clergy are considered dual-status taxpayers for their ministerial income, meaning they pay income taxes as employees and Social Security and Medicare taxes as if they were self-employed.
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Pastor’s Love Offering: Gift Or Taxable Income?
A 2018 court case helped to clarify when pastoral gifts are considered taxable income. Make sure you know how to classify your income to avoid owing penalties and back taxes.
H.R. 227: Will Congress Let Clergy Opt Back Into Social Security?
Members of the clergy are unique among American taxpayers in that they have the option to opt out of Social Security. There is a short amount of time at the beginning of a person’s ministerial career when they can request…
How To Make Quarterly Estimated Tax Payments For Ministers
As we’ve discussed previously, churches are not required to withhold taxes for pastors and other clergy. Because of a minister’s dual taxation status, the IRS expects them to pay as if they were self-employed. How do self-employed people pay taxes?…
The New TrumpIRA Is Coming. Here’s Why Your Church 403(b) Is Still the Better Path.
Paul McWilliams is a pastor’s kid turned financial advisor specializing in helping pastors and churches make wise financial decisions that align with their mission. On April 30, 2026, President Trump signed an Executive Order creating TrumpIRA.gov, a new federal platform…
What To Do If Your Clergy Housing Allowance Exceeds Your Actual Expenses
You were going to replace your fence, but then you didn’t. You were going to buy that new sofa, but then you didn’t. You were going to move to a more expensive place, but then you didn’t. Life doesn’t always…
Tax Preparation for Ministers: Reader Referrals
Clergy taxes are incredibly unique in a complex tax system, so it can be hard to find a tax preparer who actually understands how they work. I’m always getting requests for referrals, so I turned to my readers for help.…
How Do You Report Your Clergy Housing Allowance To The IRS?
This is an excerpt from my book, The Pastor’s Wallet Complete Guide to the Clergy Housing Allowance: The church is not required to report the housing allowance to the IRS. Unless a church includes it in an informational section on…
How the One Big Beautiful Bill Act Affects Pastors
On July 4, President Trump signed into law the One Big Beautiful Bill Act (OBBBA). It’s an 870-page piece of legislation that contains some things that are relevant to your life, many things that aren’t, and a lot of language…
What Should You Do If You Don’t Have The Money To Pay Your Taxes?
Your 2024 taxes are due tomorrow. That means an envelope with your check has to be postmarked by midnight on April 15, 2025. Or you’re late. What if you owe money you don’t have? Maybe you calculated things poorly. Or…
The Great Tax Benefits of 403(b) Plans for Pastors
This is a guest post by Nate Skelly, CERTIFIED FINANCIAL PLANNER™ professional and founder of Financial Pathway. He is passionate about providing financial education from a biblical worldview. Nate lives in the Tampa, FL, area with his wife, Charity, and…
Should You Keep A Mortgage Just For The Housing Allowance & Mortgage Interest Deduction?
Keep your mortgage so you don’t lose your housing allowance and mortgage interest deduction! How many times have you heard that advice? A reader recently asked me about it. Is that really good advice? I know for most people, keeping…
What is a Social Security Offset & How Does It Work?
As you probably know if you read this blog (or can find out here), pastors have to pay both the employee and employer portions of Social Security and Medicare taxes as if they were self-employed. Those Social Security and Medicare…