TN 10 (08-04)
RS 01803.251 Gross Income - Ministers
Citations:Section 211(a)(1) of the Act, Section 404.1091 of Regulations No. 4. Social Security Act
1. Included Items
A minister includes as gross income:
Fees and honoraria for officiating at weddings, christenings, funerals and other services in the exercise of the ministry;
Rental allowance for a parsonage or value of a parsonage furnished to him;
Value of meals when furnished as part of his compensation; and
Travel and automobile allowances, although these same items will be deducted as business expenses if incurred in the performance of his duties.
2. Excluded Items
A minister excludes from gross income:
Pensions and retirement pay;
Parsonage or housing allowances when included in retirement pay after the minister retires, or any other retirement benefit received after retirement pursuant to a church plan as defined in Section 414(e) of the Internal Revenue Code, must be excluded when computing NESE. For example, if a minister retires from Church A and the rental value of a parsonage or any other allowance is included in his/her retirement pay the parsonage allowance must be excluded when determining NESE. However, if this same retired minister goes to work for Church B and is paid a parsonage allowance by Church B this new income must be included when computing NESE.
Gifts, unless they are understood to be part of his compensation.
IRS Publication 517, Social Security for Members of the Clergy and Religious Workers.