Ministerial Tax Horror Stories (Don’t Make These Mistakes)

I remember the sinking feeling several years ago as I flipped through the mail. A letter from the IRS was in the mix, something I was not expecting. With a degree in finance and years of corporate financial experience, I figured doing my own taxes as a pastor would be something I could handle. Nope. I made a $4,000 mistake. I called an accountant that day and have not done my own taxes since. 

Most pastors never receive formal training in clergy tax law. Seminaries focus on biblical languages, theology, and preaching but rarely on housing allowances, self-employment tax, or payroll classification. The result is that well-meaning ministers stumble into mistakes that can trigger audits, penalties, and years of back taxes.

What follows are eight of the most common (and painful) tax mistakes made by pastors, ministers, and paid church staff, along with brief examples that show how easily they