Topic 417 - Topic 417 - Earnings for Clergy 1 The Internal...

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Topic 417 - Earnings for Clergy 1 The Internal Revenue Service’s topic 417, illustrates the guidelines necessary for an income tax return to be filed by a clergy member. For tax purposes, clergy refers to a licensed, commissioned, or ordained minister of an exempt organization and is considered a common law employee of the church, denomination, or sect. (Pub 417, 2009, ¶ 1). Ministers are self-employed individuals and do not have federal income tax, social security tax and Medicare tax withholding, although, ministers may elect to have the taxes deducted through out the year. A minister is still obligated to pay federal taxes and self employment taxes as a self employed individual unless they have been given an exemption from the IRS. Publication 517, Social security and other information for members of the clergy and religious workers, provides guidelines in determining social security tax and exceptions from self-employment tax. (2009, ¶1) A minister’s W-2 form will include wages in box 1 and are subject to self
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Topic 417 - Topic 417 - Earnings for Clergy 1 The Internal...

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