I am a tax professional (new at that) and have an interesting client. My client is a licensed minister, filed for an received exemption (form 4361) from self-employment tax. He has about $6,500.00 in income from churches that supported him while he was starting a church.
Questions:
1. Would this income would be reported on Schedule C?
2. If yes, the income is not subject to SE tax, how do I tell the IRS this on the return?
I am certain I have more questions, but any help from the great minds at Quatloos would be appreciated.
Ministers or Clergy Reporting Income
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Quixote
- Quatloosian Master of Deception
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Re: Ministers or Clergy Reporting Income
1) yes.
2) Write "Exempt - Form 4361" on the dotted line next to line 57 on Form 1040. Pub 517, page 10.
2) Write "Exempt - Form 4361" on the dotted line next to line 57 on Form 1040. Pub 517, page 10.
"Here is a fundamental question to ask yourself- what is the goal of the income tax scam? I think it is a means to extract wealth from the masses and give it to a parasite class." Skankbeat
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Number Six
- Hereditary Margrave of Mooloosia
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Re: Ministers or Clergy Reporting Income
A Priest, a Rabbi, and a Baptist pastor are having an ecumenical discussion on how they determine personal or in house salary vs. what they save for the parish expenses.
The Priest speaks first--"My method is to put all collections on a table with a small circle drawn. What is inside, I keep, what is outside the circle, goes to the larger parish expense and the diocese." Next the Baptist speaks up--"I place all collections on the floor with a square imposed over the monies. What is outside the square, I keep, what is inside, goes to the church expenses." Finally the Rabbi speaks up. "Your methods are just plain stupid. I throw all collections in the air. What God, Almighty doesn't catch, I keep."
The Priest speaks first--"My method is to put all collections on a table with a small circle drawn. What is inside, I keep, what is outside the circle, goes to the larger parish expense and the diocese." Next the Baptist speaks up--"I place all collections on the floor with a square imposed over the monies. What is outside the square, I keep, what is inside, goes to the church expenses." Finally the Rabbi speaks up. "Your methods are just plain stupid. I throw all collections in the air. What God, Almighty doesn't catch, I keep."
'There are two kinds of injustice: the first is found in those who do an injury, the second in those who fail to protect another from injury when they can.' (Roman. Cicero, De Off. I. vii)
'Choose loss rather than shameful gains.' (Chilon Fr. 10. Diels)
'Choose loss rather than shameful gains.' (Chilon Fr. 10. Diels)