Comments on: IRS Increases Mileage Rate to 55.5 http://www.clergysupport.com/irs-increases-mileage-rate-to-55-5/ Church and Clergy Tax, Through The Lens of a Minister Fri, 17 Feb 2012 17:47:15 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: jenny http://www.clergysupport.com/irs-increases-mileage-rate-to-55-5/comment-page-1/#comment-849 jenny Mon, 15 Aug 2011 19:14:59 +0000 http://www.clergysupport.com/?p=1332#comment-849 Based on the information you provided, I don't think this case can qualify for a higher mileage reimbursement. Unfortunately, volunteers are limited to claiming 14 cents per mile. They are not eligible for the more favorable 'business' mileage rate. However, here is a possible solution: Consider paying the retired pastor a modest sum, in order to make him eligible for the greater mileage reimbursement rate. There are two ways to accomplish this. a. One option would be to make the retired pastor an employee of the church, paid a modest wage, and reimbursed at 55.5 cents per business mile. b. The other option would be to make the retired pastor an independent contractor, paid perhaps $50 per month, and also reimbursed at 55.5 cents per business mile. On another note, we laud your efforts to honor the retired pastor and give him the best compensation available. If you're unclear about any of this or have other concerns, we'll be glad to schedule a call. We always recommend a consultation with a qualified tax advisor to uncover any other facts that might affect the outcome before implementing a plan. Based on the information you provided, I don’t think this case can qualify for a higher mileage reimbursement. Unfortunately, volunteers are limited to claiming 14 cents per mile. They are not eligible for the more favorable ‘business’ mileage rate. However, here is a possible solution:

Consider paying the retired pastor a modest sum, in order to make him eligible for the greater mileage reimbursement rate. There are two ways to accomplish this.

a. One option would be to make the retired pastor an employee of the church, paid a modest wage, and reimbursed at 55.5 cents per business mile.

b. The other option would be to make the retired pastor an independent contractor, paid perhaps $50 per month, and also reimbursed at 55.5 cents per business mile.

On another note, we laud your efforts to honor the retired pastor and give him the best compensation available. If you’re unclear about any of this or have other concerns, we’ll be glad to schedule a call. We always recommend a consultation with a qualified tax advisor to uncover any other facts that might affect the outcome before implementing a plan.

]]> By: Diana Dawson http://www.clergysupport.com/irs-increases-mileage-rate-to-55-5/comment-page-1/#comment-848 Diana Dawson Mon, 15 Aug 2011 15:29:17 +0000 http://www.clergysupport.com/?p=1332#comment-848 Retired pastor, asked by full time pastor to be the visitation pastor and that his mileage will be reimbursed. Came back and said the most reimbursement they could offer him would be 14 cents per mileage as this is considered volunteer charity work? What is your take on this? As a retired elder, still holding credentials etc. wouldn't he be eligible for the business expenses in the same way he is still able to use his mortgage as a parsonage expense etc? Retired pastor, asked by full time pastor to be the visitation pastor and that his mileage will be reimbursed. Came back and said the most reimbursement they could offer him would be 14 cents per mileage as this is considered volunteer charity work? What is your take on this? As a retired elder, still holding credentials etc. wouldn’t he be eligible for the business expenses in the same way he is still able to use his mortgage as a parsonage expense etc?

]]>