Parsonages, Parsonage Allowances, and the Religious Exemptions from Social Security Taxes and the Health Care Mandate

2017 ◽  
Author(s):  
Edward A. Zelinsky
Keyword(s):  
Health Care ◽  
Social Security ◽  
Tax Policy ◽  
Income Tax ◽  
Test Case ◽  
Internal Revenue ◽  
Tax Status ◽  
Housing Allowances ◽  
Important Test ◽  
Rental Value

This chapter revisits the tax status of parsonages and parsonage allowances. The tax treatment of these allowances is an important test case for many of the themes advanced in this book. Some states exempt clerical residences from taxation. Other states do not. The Internal Revenue Code excludes from ministers’ gross incomes both the imputed rental value of parsonages provided in-kind and cash parsonage allowances. These income tax exclusions are constitutionally permitted, though not constitutionally compelled, to reduce church-state enforcement entanglement. Such minimization of church-state entanglement is a legitimately nonsubsidizing, secular purpose. However, the Code’s exclusion of cash housing allowances from ministers’ incomes is not justified as a matter of tax policy. Such cash transactions are easily valued and give cash to the minister to pay income tax. Thus, taxing cash parsonage allowances would entail less enforcement entanglement than would the taxation of housing provided to clergy in kind.

The Internal Revenue Code and Religious Institutions

2017 ◽  
Author(s):  
Edward A. Zelinsky
Keyword(s):  
Social Security ◽  
Income Tax ◽  
Income Taxes ◽  
Religious Institutions ◽  
Retirement Plans ◽  
Payroll Taxes ◽  
Internal Revenue ◽  
Tax Exempt ◽  
Unrelated Business

This chapter examines the Internal Revenue Code’s treatment of religious entities. The federal tax statute embodies three diverse approaches to taxing and exempting sectarian organizations and activities. Some provisions of the Code—the charitable deduction, the general income tax exemption for eleemosynary institutions, the federal unemployment tax—exempt religious entities and other charitable, educational, and philanthropic institutions. Other provisions of the Code narrowly target churches for tax exemption. For example, the Code relieves churches of filing requirements with which nonchurch religious entities and other eleemosynary organizations must comply. Similarly, churches’ retirement plans receive lenient treatment under the Code. Churches receive procedural protections from IRS audits.Yet other provisions of the Code tax churches as for secular entities. Churches generally pay FICA taxes—Social Security and Medicare payroll taxes—on the compensation paid to nonclerical employees. These payroll taxes can be considerable. Churches also pay federal income taxes on their unrelated business incomes.

scholarly journals Is Federal Tax-Exemption Policy for Nonprofit Hospitals Moving to a Clearer Quid pro Quo Basis?

2012 ◽  
Vol 3 (1) ◽  
Author(s):  
Beaufort B. Longest
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Corporate Income Tax ◽  
Internal Revenue Service ◽  
Tax Policies ◽  
Nonprofit Hospitals ◽  
Internal Revenue ◽  
Exemption Policy ◽  
Income Tax Policy ◽  
Modern Era

The question of whether federal tax-exemption policy for nonprofit hospitals is moving to a clearer and more robust quid pro quo basis is examined. The question is important because heretofore the basis for federal exemption has been vague and fluid. Utilizing a quid pro quo rationale for federal tax-exemption of nonprofit hospitals as a framework, the chronological record of policy in this area is organized into three major periods: (1) A Simple Quid pro Quo: Early Federal Tax Policies for Nonprofit Hospitals; (2) A Changing Quid pro Quo: The Modern Era of Federal Tax Policy for Nonprofit Hospitals; and (3) An Emergent, Clearer Quid pro Quo: Recent Congressional Activism on Exemption Policy, including relevant provisions of the ACA. The article concludes with discussion of continuing vagueness and ambiguity in federal corporate income tax policy for nonprofit hospitals. The importance of enhanced clarity and specificity in the information upon which policy in this area is based is discussed, as are actions needed by Congress and the Internal Revenue Service to accomplish improved exemption policy.

Ministerial Tax Issues: On Wingo and a Prayer

2008 ◽  
Vol 6 (1) ◽  
pp. 78-93
Author(s):  
Dennis Schmidt
Keyword(s):  
Social Security ◽  
Fringe Benefit ◽  
Tax Planning ◽  
Financial Impact ◽  
Legal Analysis ◽  
Independent Contractors ◽  
Income Reporting ◽  
Gross Income ◽  
Tax Status ◽  
Housing Allowances

Special tax provisions apply to individuals who qualify as “ministers.” For example, they are allowed to exclude certain housing allowances from gross income and are exempt from federal tax withholdings. Most ministers are classified as employees, yet courts have also held some of them to be independent contractors. Minister-employees have a dual tax status. They are considered employees for income reporting, fringe benefit, and expense deducting purposes but are treated as self-employed persons for social security purposes. Because of their intricacies and material financial impact, special provisions that apply to ministers demand thorough legal analysis and careful tax planning. This article analyzes several key tax issues that confront ministers and provides a variety of tax planning ideas.

Arm (in de) stad : Medico-sociale uitdagingen voor het OCMW

Res Publica ◽  
1997 ◽  
Vol 39 (1) ◽  
pp. 151-168
Author(s):  
H.B. Cools
Keyword(s):  
Health Care ◽  
Social Security ◽  
Social Welfare ◽  
Development Projects ◽  
Social Challenges ◽  
Near Future ◽  
The City

This account of poverty and deviance during recent times in the city of Antwerp compares situations of the 1930's with present times. Undoubtedly social security prevented, since the end of the war, that many people feit into poverty.  Still in the presence of massive unemployment, public relieve organisations, such as the 0.C.M.W. (Municipal Centre for Health Care and Social Welfare) are more and more confronted with what is called precarity.About 25% of the Antwerp population is estimated to be living in a precair situation. After glancing on the near future and warningfor a number of social challenges, the article insists very much on preventional politics and coordinated total development projects in the depressed areas.

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