Taxpayer asks:
In addition to being a pastor, I’ve got $3300 worth of speaking honorariums from various churches and camps. How do I report that? Do I use schedule c (self-employment)? Or is there another form to use? Thank you.
Taxgirl says:
Hmm. This could go a couple of ways. I think that if the speaking is something that you’re making into a business, or if it’s something that you consider part of your existing business, then it goes on a Schedule C.
If the honorariums are more like “thank yous” for an occasional gig that you do to supplement your pastoral duties, but you treat it almost as a hobby, you’d report it on line 21 as “other income.”
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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Is it just me, or is it crazy that this can go two ways? I mean, I get it, it can go two ways- but the very fact that it can tells me something is wrong with our tax code.
Well, maybe I wasn’t quite clear. It’s not so much that there are two rules and you pick one, but more that which way depends on the actual facts and circumstances. The IRS treats “hobbies” much differently than businesses.