Original message posted by Trey Noland on 01-16-07.
Does anyone know the general reporting limits and regulations on income for missionaries living oversees? If a missionary lives out of the country and had $15,000 in donations with no taxes taken out during the year, do they even have to file a return? What is the income threshold for filing?
Reply by Joshua Jones on 01-16-07.
Trey, hopefully some accountants will visit the site and weigh in on this, but I do happen to know that Steve Richardson and Co specialize in doing taxes for ministers and missionaries. I would highly recommend them. I do know typically that if you're an ordained minister, you want to receive at least part of your income as a non-taxable "housing allowance." $1,000 per month is very reasonable, so you might not owe very much.
Reply by Kira on 02-06-07.
If you are single, the minimum filing requirement is $8,450 and for married filing joint it is $16,900. However, even if you are married, I would still recommend filing your taxes (with the assistance of a CPA that knows how to treat missionary income). Missionaries ofen have their donations passed through to them without any IRS involvement (ie. W2 or 1099) and as such, the IRS would view the mission work as self-employment income. The good news is, that you can write off most of your travel and living expenses, and will rarely owe very much in taxes. My advice would be to get a good CPA, like the one Joshua recommended.
Reply by Esther on 05-31-07.
It is easiest to file as self-employed if you don't recieve a W2. Quite frankly you should file whether you have to pay or not simply so that you have the record of it if there are ever any questions in the future. Even if you don't owe taxes (and those who are living overseas are exempt from paying until at least $32,000 as far as I know), you probably still owe SS. If you are ordained claim your housing and in any case claim as many ministry expenses as you can as that will decrease your SS payments. Quite honestly, my guess is that if you are only receiving $15,000/year you probably don't want the expense of a CPA. I have never had any problems with my income tax froms that I have filed myself.
Reply by Woody on 04-17-08.
Well acually this is another question. My funds are donated to an agency and I draw funds as needed. If I don't draw funds for a month but send my crew fees directly to the agency from my bank account am I still required to pay the 15.3% self employment tax on those funds. It doesn't make sense that I would be required to pay taxes again on monies that I have already paid tax on... but I haven't been able to find any information that states otherwise. Help!
Reply by Laurie Sheppard on 12-15-09.
Our church is wanting to sponsor a pastor in Peru (non US citizen). What are the rules regarding taxes for our church and the pastor? We have found an organization with a 5013-C to send our money through. Do either of us need to pay taxes sending the money through this organization? thanks for your help
Reply by Kevin on 07-20-10.
Regarding the comment made by Esther on 5/31/07, what is the $32K exemption she is talking about? Where can I find info on this?
Reply by Kimberley on 08-22-10.
My husband and I want to open our home for missionaries to reside when they need a place to stay. How do we record that on our taxes?
Reply by Rev . P. Ephraim on 04-08-11.
"But as many as received him, to them gave he power to become the sons of God, Even to them that believe on his name." John 1:12 SOUL2SOULMINISTRIES P.O.BOX-3 ,TENALI522201,GUNTUR(DT)A.P.INDIA =================================================================================== Rev. P. EPHRAIM To, Dear servants of God Greetings to you in the most precious name of our Lord and saviour Jesus Christ. Let me introduce myself that my Name is Rev. P. Ephraim, We have established a Christian Organization named "Society of the Prince of Peace" with the Help of some Faithful Christians. We established this society only because that we can proclaim the spirit of God in our Area. Some of our Gospel Teams have been Distributing the Bible free Tracts and Booklets in the particular centers Hospitals, Educational Centers and some Remote villages of our Area. By the Grace of God we are running a Christian Lending Library in my town since 1997. So many people are come and search the scriptures and saved their souls to our Lordís kingdom through these scriptures. I will be able to succeed this program. So we request you please pray for my spiritual need and send some Bibles, Bible based material to my library purpose. We have A Good Team of Youth 15 member, they are all involved Tracts distributions, street preaching and they are visit to some remote villages and proclaim the Godís words and distribute the free tracts and new testaments. So we need some more Gospel tracts and Library material to my area people spiritual help. Kindly consider my request and send the above material to me. We win some souls here through these materials. God bless you always. I am waiting for your kind reply. Pls Prayer for our NeedĎs: - OUR TEAMS ARE VISIT TO SOME REMOTE VILLAGES , AND SPREED THE WORD OF GOD AND DISTRIBUTE THESE TRACTS FREELY. OUR TEAMS VISIT TO HOSPITAL EDUCATIONAL CENTERS WEEKLY ONCE I HAVE NEED OF MORE THEN TRACTS & BIBLE'S . . . Therefore Brother as you too know pretty well as all these services are Herculean tasks and as such, we are humbly and earnestly requesting and imploring that please kindly pray for the total augmentation of our respective ministry here in India . With pleasure, your physical presence here with us is highly solicited according to your tentative schedule and as per Godís Will. We will pray for your visit to India and its grand success. We do hope you may react peacefully and consider our this specific request with kind heart and also with prayerful outlook. It is our humble request please kindly visit once our ministry website with pleasure. See Our Web Site : - www.soul2soulministriesindia.blogspot.com Please pray for us as we pray for you. We shall await for your further the most valuable and prayerful response at an earliest with good anticipation and fervent hope. We pray for you and your Family and also your ministry in my Regular prayers. WE NEED YOU! Please Help Us. We especially need monthly donors May God Bless U Yours in His service forever Rev . P. Ephraim