Question

Church "gift" to honor volunteer service

Forum|Forum|1 year ago
February 20, 2025
1 reply
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Long story short, my wife and I had volunteered for our church for over 18 years and stepped away in 2024. As a way to honor our service, a gift of $5 was given to us, subject line of check was In Appreciation of Service to Ministry Gift.

A week into 2025, we were sent a 1099-NEC for that "gift". Upon talking to staff, they stated because we volunteered our service to the church (again, no expectations were made that we would be paid for our time) we were issued it.

It's an unexpected hit on us. Is this correct to be issued a 1099?

T

ThomasM125

It would be correct to be issued the Form 1099-Misc if the amount was over $600 for the year and it was a gift. The form can be issued if the amount is under $600, but it is not required.

A gift is something you receive for which you do not have to give anything back. In your case you did not have to provide a service to receive the money, so it may be considered a gift. It would be different if you had an arrangement where you provided services to the church with the understanding that you would be paid. Since you provided your services voluntarily, the payment you received may be considered a gift by the IRS.

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