musicaljeanyuss raises an interesting point.
The church should be withholding federal, social security and Medicare tax from your pay. You are employees and not contractors or subcontractors. Unless your church has filed a form 8274 electing not to withhold social security tax, they are supposed to withhold tax. They do not want to withhold tax because the church has to pay a portion of your social security tax which can be costly to a small or large church depending on the number of employees. So to avoid this liability, the church either pays you “under the table” which is what a lot of churches do, or they pay you like musicaljeanyuss is paid, withhold no tax and issue you a 1099 at the end of the year.
Most of you guys and gals are young and not familiar with the tax laws, so you end up making this money, kicking it, then receiving this 1099 at the end of the year and when you file your return, you have a large tax liability because you have not paid any taxes.
Ladies and Gentlemen, I work for the IRS and have for 17 years. The information I am providing is general. For additional information, please contact your local IRS Walk-in office or call the IRS help line for tax assistance and questions 1-800-429-1040. Check out the website:
www.irs.gov.
These publications are free to review online or download. Check out the following:
IRS Publication 15, pg.7, “Who are employees”
IRS Publication 517 (Clergy and members of religious organizations), pgs. 1 – 4, specifically pg. 4 paragraph 3
Form SS-8, Complete this and mail it in and the IRS will determine if you are an employee.
Again for additional information simply contact your local IRS office or call the toll-free number previously listed.
