The Ohio Independent Baptist, February 1961

n elJru,1 ry, I 9(1 I - Benefits For The Clergy I' ' J. t . ' l 1\ .. \ ,1tl,clr <>f 1• .. t'tl c r a l 'l .. a ]>ri 111t\r f c1 r ( ' lt' rg, 111<.' tl , . ..-,,,t\r1g l 1>1 <:'SS, nr>pa11 , Incl . • ( l{<. \11 ltllt'Cl fl ()tll l (l(>Cl)r 1011tl1I, l lsc'cl l>, I'c.'1111issio11) t),t r till' ,._,,1 , ,\ {<tt,tllcr~tlllt i11 - I l ,\~l i11 111 '( lllt' (,\'\ lll'l\t'l 1t, lt,l\ l) l'11 • .111 t , , <' t r, c l t 1 c., 1, 1c.:'11 • \ , a , t ' " t 1 l t , 111i11i ·tt , 11n, C) f lt'tt < l)tn111 <.'(ltl'it(l<.'t– nl)lc· .1, 111c.~ if tltt, t'l tt l tl1tl't' ,, lt<J l 1 , idt' tl1t 1r 1),1, t 11<.'t'1' .1rl' fn1111l1ar ,, itl1 tilt l rt1, 1,ttltl" tll tl1t' l11l 111al l,t, t 11tt(' t1tlt ,, 11 it·l1 1 l,1 lt' t<.> t•lt'rg, - 111(:'ll. ~1·()cla, . f l)t t \.\11111)lt', ... t'cl1<.)11 l 07 of tl1c. t)tlc l)t' 1111it tl1e 111i11istt:\1 ,, 110 e Lt)11g1 ~,1t1t 11 ft1r11i ·l1c 111111 ,, itl1 a '" .. 1,,11 <.)11 .. 1~t' tc.l t'\.('lt1cle tl1e re11t,1l ~ ,1lu elf tllt' 11,1r ·011 \1gf• fro111 l1i · gro 1n– l't 111 . r, .: l1ot1lcl lie rece1v·e a ca l1 ,1llt''' ..111cc i11 lie t1 of a par 011age, tl1~ 111('(1111e, 1)rt1p rl~ accot111ted for, n1ay ..11 o l1e e:'\clt1{lecl. i11c 195.J, a11y al– lo,,·a11ce paid to a 111i11i ter to defra)' tl1 co t of public utilitie l1e ti es l1ot1ld al o be xclt1ded. 0 ~ ~ \ \ ·hile clerg)·me1 hould exclude, for Fede ral i11come tax ptrrpose , tl1eir allo,, a11ce for rent and utilitie , these allo\,·~111ce hould be used to the ex– tent tl1e)" are needed to give the I11i11i ter the largest po ible social ect1rit\' credit. Federal la,vmakers • decicled ,,·i ely to o'i,·e clergymen the right to i11clude these allo,vances ,\·he11 the)~ compute their social se– curih· taxe . . For example let's take the case of the pastor ,,·hose an11ual salary is $3,- 600 and ,,,hose annual allowances for rent and utilities t otal $1,500. To compt1te hi social security tax, h e ,,·ould t1se hi salary of 3,600 plus 1,200 of his allo\.vances to give him the max:imum annual amount ( $4,- 00 1 011 ,,·hich social sect1rity taxes are pre e11tl)' collected. hould his allo,, 1 ance be '1,000 annually, his social sect1rin: taxes ,,·ould be com- " pt1ted on S4,600-his salary plus his allo,, 1 ances . This social sect1rity bene– fit accn1es to those cler~}me11 \vhose salane , apart from allo\vances, are lE: than S-!. 00 a11nually. The que tio11 is. "\ \ 1 l1y is this a benefit?" _.\ncl the a11s,ver seems ob– , ·ious. ocial securit) taxes represent a11 m,·e tment in retire1nent income at an unbelie,,abI,, lo,\ 1 rate. The in- ~ crea~ecl in, est1Tient ,\·hich the minister makes, as a result of increasing his ocial securit). 1 base through allo,v– a11ces, is 11ot great. The maximum amount a minister ,,,ill be required to pa)· for social security taxes for 1960 ,,ill be S216. or 4~ per cent of $4,800. Some ministers ,,rho recei,te cash ,lll() \\ ,111<.'t' for tl1 Jl arso11(l~f'!) tl1c ()\\ 11 () r 1('t1l' f ()t tl1<.' 111sc'l\ r·s O\'t'rlook tl lt' f(l ' l t}1a t tl1c U11lC)lllll <lf tl1c CAClt1- sic111 is l i111it cl . rl~l1 li1nitatio11 is clea1- l, · , t f()r ll1111 ccli <> 11 1()7 of tl1c 19:34 ( <.>clc ,, l11t'l1 tatc tl1,1l a 111i11ist r 1nay '\Cl t1cl fro111 hi · gro s i11cc>1nc , "Tl1e rt 11 tc.ll ,1llo,,·a11c paicl to l1i111 a part of l1i 0111pe11 atio11 , to th xte11t ti ed l1)' l1im to r 11 t or provid a 1 )) 10111 . , \ ' l1at doe tl1i mea11? Let u a ·- t1111e tl1at a pastor ,va allowed $1,200 ,l a ca h r 11 tal allo, a11ce by hi co11- g1egation for 1960, ii1cluding utilities . But thi ot1tlay for re11t a11d utilities cluri11g the year totaled only $1,100. A correct reh.1rn of hi t axable gross i11- C'ome ,vill, therefore, include his salary plu $100 a the unspent portion of l1is parsonage allo\vance. H e can– not carry over the $100 to be spent ir~ 1961. Inaccuracies on the part of pastors in reporting parsonage allowances may lead to disastrous results. H too many 1ninisters were too careless or i11- accurate regarding this point, this tax benefit might be partially or en– tirely withdrawn by Congress. Minis– ters will do ,vell. therefore, to furnish a schedule showing the expenditures made from the parsonage allowance and the unexpended portion, if an)' . This will h elp the auditor of the I11- t emal Revenue Service to deter– mine whether the minister has ac– counted for the limitation of the ex– clusions . It will also show his good faith in the preparation of the rc– h1rn. A few organizations may try u11- s t1c·c· ssft1ll y tc> lJc11 lfit 111i11is tC'1 s l)y gr<11 t111g 11a r~<>t 1age al lc>\v ~\ 11ces to t l1c.11n ('V 11 thc>ugl1 t11csc (' l<'rgym n 11gag i11 pt1r ly scct1lar acti 1ti s. erc:.ly l1olcli11g a licc11se t<J preach th(! gospel clo s not in itself (1ualify a 111i11istcr for tl1e parso11age allowance. lle n1t1st sho\,v, in aclcljtion , that tl1e clt1ties he performs i11 his position rea– sc11ably reqt1ire the s rvices of a n1i11ist r . A a general rule, the min– ist er may claim the parsonage bene– fit \vhen more tha11 half of his time is d evoted to religious activities in- tead of secular duties. When in cloubt, the minister should consult the In tern.al Re, ,enue Service. 0 ~ ~ A minister teaching theology or related subjects and doing aclminis– h·ative work at a theological semina~, or in a school of theology of a college qualifies. The nature of the position a11d not a professional standing of the minister is the deciding factor. A minister ,vho serves as the head of a d epartmen t of religious educatio11 or religious films in a religious book– store would qualify for the allow– ance. In such a case, he cannot make himself eligible for the exclusion of the rental allowance by making the segregation himself, regardless of the sums paid. The clergyman must observe the 1ul es of the law and regulations to re– ceive this tax benefit. Congregations and employers should draw up writ– ten service conb·acts vvith the minis– te1, setting forth the amount of the cash re11tal allo\vance and staru1g what utilities are to be included in this al- The Go lden Gate to Chriatian Service On our beautiful campus overlooking San Francisco Bay, high school grads can obtain- A CHRISTIAN EDUCATION FOR LIF'E AND SERVICE. B.A. and B.Th . degrees; Bible major with minors in Theology Pastor al Education, Ch r istian Edu cation , Mis.sions, Music, Greek, Social Seience, Education-Psychology, or the B11manities. Co -operative programs leading to B.S. and R.N . degrees, also B.A. and M.B.A. or M.S. degrees in Business Administration. Write for free catalog, Dept. I ACCREDITF:D: AABC WESTERN BAPTIST BIBLE COLLEGE Rev. H. 0. Van Gilder, D.D., President Bill and Elm Streets, El Ce1rito, Cal,