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Forum
-> Household Management
-> Finances
amother
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 Thu, Mar 07 2013, 2:20 pm
A few years ago, our accountant told us that we don't need to pay taxes on a stipend that DH received from a congregation.
We stopped using an accountant and I just wanted to know if that advice was specifically because the amount was small (under 200), not fixed (it fluctuated from month to month), or some other reason because now the amounts are higher, and I wanted to make sure that we were filing correctly.
TIA
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yummymummy
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Thu, Mar 07 2013, 2:40 pm
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is this a housing allowance?
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amother
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Thu, Mar 07 2013, 2:55 pm
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no. It is a stipend for a kolel.
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bbmom
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Thu, Mar 07 2013, 3:00 pm
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First of all, you should ask an accountant (preferably you old one) why you didn't have to pay taxes. If that reasoning still applies then you probably still don't have to pay taxes. It's possible that the accountant filed that income as parsonage which is tax deductible.
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theprocastinator
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Thu, Mar 07 2013, 3:08 pm
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Maybe it's considered to be college tuition?
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Cookies n Cream
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Thu, Mar 07 2013, 3:45 pm
| bbmom wrote: | | First of all, you should ask an accountant (preferably you old one) why you didn't have to pay taxes. If that reasoning still applies then you probably still don't have to pay taxes. It's possible that the accountant filed that income as parsonage which is tax deductible. |
I was going to say parsonage as well.
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amother
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Thu, Mar 07 2013, 3:52 pm
But wouldn't parsonage have to do with how the congregation pays/files?
As far as I know, the original payment was a check that got hand written by the Rabbi and there was no pay stub.
Recently, he joined another small kolel, but this one has a more official pay structure and there actually are pay stubs. We were getting ready to pay taxes, and DH said that he thought it didn't count, but I wanted to check on that...
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amother
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Thu, Mar 07 2013, 5:52 pm
Actually, parsonage is kind of like self employment income in that you need to pay social security (your side and the employers side) on it. You do not have to pay any other taxes (as far as I know) on it which is why is it a nice benefit to have, but it is not tax free benefit.
Do not take this as legal advice consulate your accountant.
Anon because I don't want my username associated with my job. :-)
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seeker
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Thu, Mar 07 2013, 6:10 pm
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I looked into parsonage a while back and it seems that its application is limited and your typical kollel stipend doesn't qualify for that status. We were advised to report the kollel stipend as a fellowship. That's what I enter it as and I let Turbo Tax figure out the rest...
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