IME5022 - The Pastor and Taxes

Course Description

This course is designed to provide information for the pastor in regard to personal taxes. Pastors are primarily trained in the areas of theology, biblical knowledge, counseling and local church administration. Many pastors do not receive training in regard to managing one's personal finance and income tax. The pastor is an employee of the church and receives a W-2 reflecting income. However, there are IRS guidelines that a pastor may use in structuring one's remuneration. The IRS makes a distinction between tax evasion and tax avoidance. Tax evasion is a violation of the law. Tax avoidance is permissible. The IRS provides guidelines in regard to the minister and how one may structure one's remuneration. The class will focus on the effective ways a pastor may structure ministerial compensation.

These are the subjects we will discuss. Housing for the pastor: parsonage or housing allowance? The Ministers Housing Allowance, Auto and other Business Expense Reimbursements, Income taxes for church employees, and Strategies for structuring ministerial compensation. The skills learned from this class will assist the pastor in maximizing one's remuneration for income tax purposes.

Course Objectives

The following will be achieved by completing this course:

1. The pastor will learn the tax advantages that are unique for the minister
2. The pastor will learn the advantages and disadvantages of the parsonage or the housing allowance
3. The pastor will learn how to utilize the housing allowance
4. The pastor will learn how to minimize income taxes for church employees
5. The pastor will develop strategies for structuring ministerial compensation

A complete list of books, requirements and additional details may be found on online.nbcime.com under "Class Schedule".