New Federal Tax Law Has Immediate Implications on Clergy Moving Expenses
HIGH PRIORITY FOR MOVING PASTORS AND RECEIVING CHURCHES
The recently enacted tax law eliminated, for the next several years, the tax benefit of moving expense reimbursements. In fact, it eliminated the tax deductibility of the unreimbursed moving expenses.
For churches that choose to either reimburse their incoming pastor’s moving expenses or choose to pay those expenses directly on behalf of the pastor, there are 2 broad ramifications:
1. Taxability of the reimbursement/payment, both income and SECA
2. Pension contribution
Moving Clergy Must Update the Online Clergy Financial Support Worksheet (CFSW)
A line has been added in Section V, line 9 to the Clergy Financial Support Worksheet (CFSW) That line is bolded and labeled “Moving Expense Reimbursements
…” Any pastor who has received these funds since 1/1/18, and who receives these funds this June and in the future, must submit, electronically, a revised CFSW with that amount included in the new line. As always, the CFSW should synch with the Pastor’s W-2. The revised CFSW has been uploaded to Data Services. Clergy who have already completed their worksheets for the new conference year and who have reimbursed moving expenses or expenses paid by their churches will need to complete a new form by July 1. Collection of this moving expense information is necessary so that W-2s can include this information in box 1 of the W-2 and so that the proper amount of CRSP DC and CPP can be contributed to Wespath on behalf of the pastors who receive, either directly or indirectly, these reimbursements.
For questions and more information, contact Keith Cox at email@example.com or Karen Fullerton at firstname.lastname@example.org.