Author Topic: Parsonage (Read 21226 times)

elit · « **Reply #20 on:** January 10, 2016, 10:06:43 AM »

Quote from: peacenlove613 on January 10, 2016, 10:05:10 AM

For Medicaid you only have to report what you declare on your tax return.
For snap your supposed to declare any money you get whether you declare it on your return or not.

Source

churnbabychurn · « **Reply #21 on:** January 10, 2016, 10:07:19 AM »

I don't understand the discussion either.

There is a housing exemption https://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Interest,-Dividends,-Other-Types-of-Income/Ministers'-Compensation-&-Housing-Allowance/Ministers'-Compensation-&-Housing-Allowance

but that's it.

https://www.irs.gov/taxtopics/tc417.html

"However, you can request an exemption from self-employment tax for your ministerial earnings, if you are opposed to certain public insurance for religious or conscientious reasons."

Lol

peacenlove613 · « **Reply #22 on:** January 10, 2016, 10:09:17 AM »

Quote from: elit on January 10, 2016, 10:06:43 AM

Source

What I was told by Monsey community center when I tried to sign up.
I was able to get Medicaid but not snap because of undeclared income. Parsonage, gifts from parents etc.

elit · « **Reply #23 on:** January 10, 2016, 10:10:49 AM »

Quote from: peacenlove613 on January 10, 2016, 10:09:17 AM

What I was told by Monsey community center when I tried to sign up.
I was able to get Medicaid but not snap because of undeclared income. Parsonage, gifts from parents etc.

Thanks. Someone was just asking me last night. ..

elit · « **Reply #24 on:** January 10, 2016, 10:12:41 AM »

Quote from: churnbabychurn on January 10, 2016, 10:07:19 AM

I don't understand the discussion either.

Quote from: EJB on January 10, 2016, 09:30:40 AM

I can't imagine any accountant feels its legal to not report parsonage income.

Quote from: elit on January 10, 2016, 09:37:29 AM

i know one trying to see if he's a complete yachid or not

Sport · « **Reply #25 on:** January 10, 2016, 10:15:26 AM »

Quote from: churnbabychurn on January 10, 2016, 10:07:19 AM

I don't understand the discussion either.

There is a housing exemption https://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Interest,-Dividends,-Other-Types-of-Income/Ministers'-Compensation-&-Housing-Allowance/Ministers'-Compensation-&-Housing-Allowance

but that's it.

https://www.irs.gov/taxtopics/tc417.html

"However, you can request an exemption from self-employment tax for your ministerial earnings, if you are opposed to certain public insurance for religious or conscientious reasons."

Lol

That is what we're discussing. The question is do you need to declare this money that you get for housing. Almost all accountants say that you must. I know of one that claims you do not need to.

Dawie · « **Reply #26 on:** January 10, 2016, 10:26:42 AM »

Quote from: peacenlove613 on January 10, 2016, 09:58:21 AM

So what do you gain by getting parsonage? Isn't that how much can you pay on a 1099?

alot of people that get and report parsonage actually end up paying more taxes and take home less pay then they would had they taken a regular paycheck. It also affects the Earned income credit calculation as it counts as income but not earned income

ryg · « **Reply #27 on:** January 10, 2016, 10:35:02 AM »

Parsonage is not included in gross income for insurance out snap. I have also heard about some accountants who say don't declare it but it is explicit on the IRS site that it needs to be declared.

Work-for-ur-muny · « **Reply #28 on:** January 11, 2016, 12:54:34 AM »

Parsonage is definitely a "don't ask, don't tell" territory.
Very much like the UPS method... Undeclared Parsonage Salary...

kangarruu · « **Reply #29 on:** January 11, 2016, 08:52:53 AM »

Quote from: peacenlove613 on January 10, 2016, 10:05:10 AM

For Medicaid you only have to report what you declare on your tax return.
For snap your supposed to declare any money you get whether you declare it on your return or not.

Quote from: elit on January 10, 2016, 10:06:43 AM

Source

See the SNAP sourcebook* section 13 for allowable exclusions from SNAP income. There's no allowable exclusion for parsonage income.

Under the old Medicaid regulations there was no allowed exclusion for parsonage income. Under the new regulations the MAGI calculation incorporates a substantial amount of tax law, and I'm not certain whether the parsonage exclusion was imported. My assumption is that it would not be, since you must pay self-employment tax on parsonage.

*The linked sourcebook is NY-focused, but SNAP regulations are federally-controlled and there shouldn't be significant differences by state.

ETA: Further research indicates that MAGI does not include clergy housing allowances.

elit · « **Reply #30 on:** January 12, 2016, 10:13:28 AM »

Sorry would like to bump this thread one last time.
Noone else here has heard of or from an accountant that you don't have to report parsonage?

Dawie · « **Reply #31 on:** January 12, 2016, 11:16:57 AM »

Quote from: elit on January 12, 2016, 10:13:28 AM

Sorry would like to bump this thread one last time.
Noone else here has heard of or from an accountant that you don't have to report parsonage?

there is no such thing because it's black on white in the IRS Regs
The only reason anyone would say not to report it is becasue it isn;t reported to the tax authorities anywhere
It's not (or shouldn;t be) on a W2 (except perhaps the employee copy) so how would they know, but it's the same as not reporting any income. (any cash, unreported deal)

yoruel · « **Reply #32 on:** January 12, 2016, 11:24:22 AM »

See Attached.
Its from the Agudah.
I hope this helps someone.

elit · « **Reply #33 on:** January 12, 2016, 03:20:17 PM »

Quote from: yoruel on January 12, 2016, 11:24:22 AM

See Attached.
Its from the Agudah.
I hope this helps someone.

Thanks

jackofall · « **Reply #34 on:** January 12, 2016, 03:36:39 PM »

Quote from: churnbabychurn on January 10, 2016, 10:07:19 AM

https://www.irs.gov/taxtopics/tc417.html

"However, you can request an exemption from self-employment tax for your ministerial earnings, if you are opposed to certain public insurance for religious or conscientious reasons."

Lol

Do Rebbiem use the SE tax expemtion option?

Dawie · « **Reply #35 on:** January 12, 2016, 03:43:14 PM »

Quote from: jackofall on January 12, 2016, 03:36:39 PM

Do Rebbiem use the SE tax expemtion option?

some do some dont
usually depends on the Mosad

jackofall · « **Reply #36 on:** January 12, 2016, 03:47:09 PM »

Quote from: Dawie on January 12, 2016, 03:43:14 PM

some do some dont
usually depends on the Mosad

Cmiir but I don't Think it has anything to do with the Mosad. It's a personal exemption that one would file for.

Dawie · « **Reply #37 on:** January 12, 2016, 03:53:26 PM »

Quote from: jackofall on January 12, 2016, 03:47:09 PM

Cmiir but I don't Think it has anything to do with the Mosad. It's a personal exemption that one would file for.

Oh you mean a Form 4361 vow of poverty exemption ?
iv'e never seen a rebbi do it
At the rate the SSA is going it's probably not a bad idea

jackofall · « **Reply #38 on:** January 12, 2016, 03:56:14 PM »

Quote from: Dawie on January 12, 2016, 03:53:26 PM

Oh you mean a Form 4361 vow of poverty exemption ?
iv'e never seen a rebbi do it
At the rate the SSA is going it's probably not a bad idea

yes. who cares about the SSA?

Dawie · « **Reply #39 on:** January 12, 2016, 03:57:52 PM »

Quote from: jackofall on January 12, 2016, 03:56:14 PM

yes. who cares about the SSA?

maybe thats the Svara of the CPA that says not to report, you are in essence making this election (although you didn't .. so it's a moot point)