Top 10 Questions Pastors Ask MinistryCPA

Based on our experience, the following are frequent questions asked by ministers, missionaries, church treasurers, and others serving in ministry positions as licensed or ordained ministers. Our answers are not intended to be exhaustive. Accordingly, you should consult your own tax professional for assistance in applying this information to your specific tax situation. –Corey A. Pfaffe, CPA, LLC



Question:

What bookkeeping system should our treasurer use to keep the church books?

Answer:

The bookkeeping system used by a church...
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Question:

Should I "opt out" of the Social Security system?

Answer:

First, some background information:

The Internal Revenue Code (IRC) exempts ministers... continue reading



Question:

How can the church and I work together to sell the parsonage and get my family into a home of our own?

Answer:

The answer varies greatly based on the church... continue reading



Question:

Can a church give non-taxable gifts to its pastor(s)?

Answer:

Typically, there are two ways members of a congregation can give gifts to its pastor(s) and... continue reading



Question:

What ideas can a church consider to control its rising health care costs?

Answer:

Many ministers and their employers are looking for alternative plans to... continue reading



Question:

What reports do churches need to file with the IRS regarding pastors' compensation?

...
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Question:

Should a church set up a car allowance for its pastor?

Answer:

Any financial assistance that a minster’s employer can give is appreciated. A car allowance... continue reading



Question:

As a pastor, what are my retirement options and what are the advantages/disadvantages of each?

Answer:

The...
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Question:

As a pastor, what can I deduct for a housing (parsonage) allowance?

Answer:

A minister who receives a housing allowance may exclude the allowance from gross... continue reading



Question: 

As a pastor, am I an employee of the church or am I self-employed?

Answer:

The answer is "yes" to both. Most ministers are considered employees in... continue reading