2016 - Preparing Tax Returns For Clergy - FCMM

Sep 19, 2026

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Practical guidance for clergy tax reporting and preparation, including key federal tax limits, rates, and reference data, and a structured introduction to the tax system for clergy compensation. Covers four essential elements of clergy compensation, housing allowance, compensation and fringe benefits, business and professional expenses, and income and Social Security taxes. Includes instructions for completing Form 1040 line by line, plus two detailed sample income tax return examples for accountable and nonaccountable plans, and a list of 2016 filing dates, with citations and index.

LanguageEnglish

CategoryForms

FormatPDF

Pages74

Reading Time26 min

AccessFree to download

Contents

Recent Developments

Key Federal Tax Limits, Rates, and Other Data

Introduction to Clergy Compensation - The Tax System for Clergy

The Four Key Elements of Clergy Compensation - The Housing Allowance

Compensation and Fringe Benefits

Business and Professional Expenses

Income and Social Security Taxes

Completing the Form 1040

Form 1040 - Line by Line

Sample Income Tax Returns Example No. 1 - Clergy-Employee for Income Tax Purposes (Accountable Plan)

Example No. 2 - Clergy-Employee for Income Tax Purposes (Nonaccountable Plan)

2016 Filing Dates

Citations

Index

| | | | | | --- | --- | --- | --- | | 2 0 1 6 | Tax Money
S E R I E S | | E D I T I O N | | | | | | | | | | | | Federal, state, and other reporting made easy. | | | | & by Dan Busby Michael Martin John Van Drunen Compliments of: 901 East 78t Street, Minneapolis, MN 55420 (800) [995-5357 fcmm@fcmmbenefits.org](995-5357 fcmm@fcmmbenefits.org) ● Retirement Plan ● Payroll Service ● Long Term Disability Insurance ● Group Health Insurance Dan Busby is president of ECFA, an organization that accredits Christ-centered ministries inis president of ECFA, an organization that accredits Christ-centered churches and ministries in the areas of governance, financial management, and stewardship/fundraising. ECFA’s seal enhances the trust of givers, which increases generosity, and provides greater resources to help fulfill the Great Commission. Founded in 1979, ECFA now accredits 2,000 churches and ministries across the United States. Together, these organizations have annual revenue of $25 billion. Dan frequently speaks nationally on church and ministry issues. He has authored or co-authored six titles with more than 50 total volumes. His latest book is TRUST: The Firm Foundationfor Kingdom Fruitfulness. He has been recognized for the years 2010, 2011, 2012, 2013, 2014, and 2015 on the NonProfit Times’ Power & Influence Top 50 list and honored in the Hall of Fame of the National Association of Church Business Administration. Dan served as a member of the Commission on Accountability and Policy for Religious Organizations, a national legislative advisory commission convened to address legislative proposals to the U.S. Congress for the nonprofit sector. Michael Martin serves as ECFA’s vice president and legal counsel. He graduated with a bachelor of arts in government, summa cum laude, from Oral Roberts University and a juris doctor from Regent University School of Law, where he was editor-in-chief of the Regent University Law Review. Michael is passionate about helping churches and ministries with legal and tax-related issues and compliance with ECFA standards. In addition to authoring and reviewing articles and other resources featured in ECFA publications, he assists with member compliance and leads ECFA’s church initiative. Beginning with the 2013 edition, Michael co-authored the Zondervan Minister’s Tax & Financial Guide and the Zondervan Church and Nonprofit Tax & Financial Guide with Dan Busby and John Van Drunen. John Van Drunen is executive vice president and general counsel of ECFA, with a bachelor of arts in accounting, magna cum laude, from Anderson University and a juris doctor from Regent University School of Law. John oversees the compliance process for ECFA including renewals, applications, compliance concerns, and site visits, in addition to serving as in-house general counsel. John was extensively involved in the work of the Commission on Accountability and Policy for Religious Organizations and the Religious Organizations Accounting Committee. Beginning with the 2010 edition, John co-authored the Zondervan Minister’s Tax & Financial Guide and the Zondervan Church and Nonprofit Tax & Financial Guide with Dan Busby and Michael Martin. Contents Recent Developments ..................................................... 3 Key Federal Tax Limits, Rates, and Other Data ........................ 6 Introduction to Clergy Compensation The Tax System for Clergy........................................... 7 The Four Key Elements of Clergy Compensation The Housing Allowance .............................................. 11 Compensation and Fringe Benefits ................................. 18 Business and Professional Expenses ................................. 24 Income and Social Security Taxes ................................... 30 Completing the Form 1040 Form 1040 – Line by Line ........................................... 32 Sample Income Tax Returns Example No. 1 : Clerg

FAQs

What topics does this guide cover for clergy tax preparation?

It covers key federal tax limits and data, the clergy tax system, clergy compensation elements, housing allowance, fringe benefits, business and professional expenses, and income and Social Security taxes.

How does the guide help readers complete Form 1040?

It provides step-by-step guidance for completing Form 1040 line by line and includes sample income tax return examples tailored to clergy-employees.

What are the differences between the two sample return examples included?

The guide provides Example No. 1 for an accountable plan and Example No. 2 for a nonaccountable plan, showing how clergy-employee tax reporting varies by plan type.

Sep 19, 2026

Upload by Adam