What form is used to pay from a non-profit ministry

Forum|Forum|2 years ago
January 31, 2024
2 replies
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I have a non profit ministry. If the ministry pays me to do something, does the ministry give me a 1099 or another form? Where on turbotax do I report this? Thank you.

xmasbaby0

Employee

Have you asked the ministry what kind of document they will give you?

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ThomasM125

I think you mean that you have formed a ministry that you run and have obtained tax-exempt status for it from the IRS. You perform services for the ministry for which you are paid so you want to know how your compensation should be reported to you. In this case, you would normally report your compensation as wage income on a W-2 form. As such, the ministry would need to pay in payroll taxes (FICA/MED tax) and federal and perhaps state unemployment taxes on the wages. The ministry would need to file payroll tax returns to account for your wages and the taxes associated with them. You would report the income in the Wages and Income section of TurboTax under Wages and Salary (W-2).

If you are a self-employed minister, meaning you perform ministerial services for many churches and run your ministerial activities as a business, then the ministry could report your compensation using a form 1099-NEC and they would not have to pay in or account for payroll taxes. You would report this in the Wages and Income section, then Self-employed income and expenses.

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