Guide
Wedding fees, honoraria and gifts: how ministers report them
Salary from your church is only part of ministerial income. Fees from individuals for weddings, funerals and similar services are taxed differently, even if you are a church employee.
Fees for weddings, funerals and baptisms
The IRS says fees for performing marriages, baptisms, and other personal services are generally earnings from self-employment, even if you are an employee otherwise. They are not wages on your W-2. Instead:
- Report the fees on Schedule C, along with related expenses such as travel and supplies.
- Include the net profit on Schedule SE, together with your salary and housing allowance, to figure self-employment tax.
- They count for income tax as well, so include them in your estimated payments, because nobody withholds on them.
Honoraria for guest preaching or speaking
Payments from other churches or organizations for guest preaching, speaking, or teaching are generally treated the same way: self-employment income, reported on Schedule C if you are not paid as an employee.
Offerings and love gifts
- A special offering collected by the church for you, often called a love offering, is generally treated as compensation, even if it is described as a gift.
- A truly personal gift, one given out of generosity by a friend or family member and not in return for your services, is generally not income. The label does not decide it: motive does.
Churches should report offerings given to a minister as pay. If you are not sure whether a payment is a gift, ask a tax professional before leaving it off your return.
Fees paid to the church
If your church policy requires you to turn wedding or funeral fees over to the church, the church receives the income. Put that policy in writing, and keep records. If you keep the fee, it is yours to report.
Expenses
Costs of earning fee income, such as mileage to a wedding, attire required for the service, or supplies, may be deducted against that income on Schedule C. Keep a simple log of date, event, fee, and expense.
Housing allowance and fees
Housing allowance designated by the church applies to compensation the church pays. Fees you earn directly from individuals are not part of that designation. See parsonage vs housing allowance.
A simple system
- Keep a one-page log of every fee and honorarium.
- Set aside about 14.1% for self-employment tax, plus income tax. See the SE tax calculator.
- Report the total on Schedule C.