I think missionaries are generally independent contractors. Therefore, for a non-US citizen who is also not a US resident, his taxes are between him and the Guatemalan government. I have no knowledge of Guatamalan law, but they should have no jurisdiction to require you to report or withhold. However, he surely has a duty to file a return and pay whatever he owes on his own.

I am the administrator at a church that supports a minister in Guatemala (and his church) who is not a US Citizen. Can you suggest how we should do that tax-wise?

I appreciate your advice,

Kevin

As I read the 1040ez instructions, you must file a 1040 and schedule C because you have self-employment income

I have another question.

I went on the mission field Dec 2008 after being on furlough in the U.S. Jan – Nov. Since I did not work while searching for my next assignment, I had no W2 or 1099 income.

I did have quite a few expenses (mainly presentation and mission orientation expenses) but my overall support for 2008 was very little.

Here is my question… Can I just file a 1040 EZ (and post that income on line 1) or do I actually have to file a 1040 & Sch C (which I would rather not do)?

I am more than willing to forego all of those expenses for the sake of being able to do my 2008 tax return by Friday. (It's called "I am in a hurry.")

Sorry to be in such a hurry but I tried to ask this of the IRS chat reps but they could not (or would not) answer my question.

Thank you.

As a rule, the 1099 should equal cash paid during the year. However, there's a principle called "constructive receipt," meaning you are taxed on money available to you just for the asking.

Therefore, if the church holds the money pending nothing but your request, it's immediately taxable although not yet paid. If the church would not honor such a request until the following year, then it shouldn't be taxable until paid.

(Note legal disclaimers under Author/Policies tab.)

I have been all over the internet and hope you might be able to answer my question.

It is my understanding that the amount on a 1099 corresponds to the money received (by the recipient) in that calendar year. In the case of a missionary, I would understand this to mean "the last/final check your church gives YOU for at the end of the year." This is always the way it has been handled (with my donations) in the past and should there be a discrepancy between the monthly checks (received by the missionary) and what the church is reported.

Simplified: If the church decides to hold donations sent at the end of December and give you the money in mid- January is that still considered income YOU received in the prior year?

I am a missionary currently serving in Kenya. I did contact the IRS chat but they seemed to have no clue and directed me to the international tax desk. (Although mine is just a question regarding reporting proper 1099 amounts.)

Any right answer you could provide would be appreciated.

Thank you,

B~

She only has to pay SE tax on her net income. She can deduct the expenses of performing her missionary duties. If she made a profit, it's taxable income, even though she wasn't seeking a profit. The rules for what is deductible vary with how much time she spent in Australia. If she was there less than one year, the rules are fairly generous.

This may be a similar issue to what you’ve already discussed, but I wanted to make sure. My sister is a Volunteer through YWAM in Australia and as a result had to raise support. The supporters were advised to send the money to YWAM in Texas to receive the tax deduction for their contribution. YWAM sent my sister a 1099-Misc at the end of the year in the amount of the donations. Does she really have to file as a SE and pay SE tax? Could these be considered gifts or her activities a hobby instead? If not, what type of expenses could she deduct against the “income” on the 1099 since she’s not really running a “for profit” business? Thanks for any light you can shed on this situation.

For His Kingdom,

Tim

You're quite right. They're definitely not statutory employees. http://www.irs.gov/businesses/small/article/0,,id….

In some denominations, they could be common law employees, but as you note, this would be unusual.

What a mess.