Honoraria income for clergy refers to payments received for services where a set fee is not legally or traditionally required. These services often include weddings, funerals, baptisms, and guest speaking engagements. Here are some key points to understand:

Definition and Nature

• Honorarium: A voluntary payment given for services that custom or propriety forbids a price to be set. It is typically unexpected and not required.
• Examples: Clergy might receive honoraria for officiating ceremonies, delivering speeches, or performing other religious services.

Tax Treatment

• Taxable Income: The IRS considers honoraria taxable income. Regardless of whether a 1099-MISC form is issued, the payment must be reported on the tax return.
• Reporting: Payments over $600 require the payer to issue a 1099-MISC form. Even if the amount is less than $600, it should still be reported as income.
• Self-Employment Income: For clergy, honoraria are often treated as self-employment income, meaning they can be reported on Schedule C, allowing for potential deductions of related expenses.

If you need more specific advice, it might be helpful to 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

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