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Level 7
February 22, 2022
Question

Minister Question

  • February 22, 2022
  • 2 replies
  • 11 views

I have a client who is a licensed, ordained, minister for a church. He made a 4361 election to be exempt from S/E tax. In 2021, he had $24,000 in consulting income from other churches where he helps those churches to operate their administrative functions more effectively. 

Is his Sched C ($24,000) subject to S/E tax or would it be exempt under the broader 4361 election (to be exempt from S/E tax)?

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2 replies

IRonMaN
Level 15
February 22, 2022

Sounds like regular schedule C income based on what kind of work he is doing for the other organizations 

Slava Ukraini!
qbteachmt
Level 15
February 22, 2022

What about this thought experiment: If the minister also ran a landscaping business and got paid by other churches, would that fall under the ministerial duties or is this unrelated business income? Does that help?

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