The Tax Cuts and Jobs Act—effective January 1, 2018 through December 31, 2025—temporarily eliminates tax deductions and the exclusion from gross income that were available to prevent the taxability of moving expense payments. Because clergy move regularly to fill appointments, this change has a tangible impact.
Moving expense payments and reimbursements—whether made directly from your conference/church/employer to the company or reimbursed to the clergyperson—must now be included in gross income, creating tax liability. In addition, these payments are now subject to SECA taxes. Clergy are responsible for reporting these taxable amounts even if the conference/church/employer fails to report them to the IRS, and should plan to make additional tax payments to cover the liability.
Information on this change and resources are available from the following sources:
From the July 2018 issue of Hark!