The best way to report honoraria income for clergy is to include it on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship). This allows you to report the income and deduct any related expenses incurred in performing the services.

Here are the steps to report honoraria income:

  1. Gather Documentation: Collect all 1099-MISC forms and any other documentation for the honoraria received.

  2. Complete Schedule C: Report the total honoraria income on line 1 of Schedule C. Then, deduct any allowable expenses related to earning this income on lines 15-21.

  3. Transfer to Form 1040: The net profit or loss from Schedule C is then transferred to Form 1040, which will be included in your total annual income.

By reporting honoraria income this way, you can potentially reduce your taxable income through deductions and take advantage of the qualified business income deduction if applicable.

Still, have questions?
Contact Pro Advisor Support to answer your questions.

Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR | Consulting
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421.0101
Fax: (888) 876.5101

 

<  Back

Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com

REQUEST INFORMATION

If you would like to learn more about our tax services designed for clergy or payroll, bookkeeping or HR designed for churches, please complete the request form to have an advisor contact you.

Click Here
Sign Me Up

Sign up here to be notified of new services, products or promotions from Clergy Financial Resources.