Papal Tax

[BobKamman]

Well, we know he has until June 15 to file his 1040.  Or October 15, if he filed an extension.

From The Washington Post:

Pope Leo XIV, the newly elected pontiff, must answer to at least one more higher power: the IRS.

The United States generally requires all citizens to file an annual tax return, even those who live out of the country. But assuming he doesn’t renounce his U.S. citizenship, Leo — born in the Chicago area and known until this week as Robert Prevost — has special tax considerations, both as a clergyman and now as the head of a foreign government.

The pope’s job as a member of the clergy does not exempt him from U.S. taxes. American citizens abroad must generally file tax returns if their income level and other personal circumstances would require them to file if they were living in the U.S., according to the Internal Revenue Service.

That doesn’t mean they have to pay the same amount in taxes. Americans who spend the year in a foreign country can exclude much of their earnings from U.S. income tax. For the 2025 tax year, Americans abroad can exclude up to $130,000 in foreign income.

That doesn’t apply to income earned working for a foreign government, however, [note:  are you sure of that?] so that won’t let Leo off the hook, as he is in the employ of the Vatican.

That means Leo will need to calculate the value of his earnings. The pope does not earn a set salary, but the Vatican covers his housing, food, travel and health care, and provides a monthly stipend for personal expenses. (“When I need money to buy shoes or something, I ask for it,” is how the late Pope Francis, an Argentine native, once explained it.) Leo probably will need an accountant to determine how to translate such benefits into income for a U.S. tax return. . . .

U.S. citizens living abroad have to file a report with the Treasury Department’s Financial Crimes Enforcement Network if they have “signature authority” — meaning control over the use of funds or other assets — over foreign bank accounts whose total value exceeds $10,000, according to Brittany Benson, an analyst with the Tax Institute at H&R Block. “This would likely apply [to Pope Leo XIV] if he has signature authority on Vatican accounts,” Benson said in an email to The Washington Post.

Full story might be behind a paywall at:

https://www.washingtonpost.com/business/2025/05/10/pope-salary-income-tax-us/ 

[IRonMaN]

The big question is, has the Pope reached out to have Jim prepare his return?  If so, can he get it done in 14 minutes or less?