Is This a Legitimate Business Expense?

Is This a Legitimate Business Expense?

Does the Internal Revenue Service (IRS) allow pastors to be reimbursed for meals with church members and visitors? If a pastor or staff member uses a personal vehicle for church business, can mileage reimbursements be claimed?

When it comes to expense reimbursement, there is no shortage of questions.

The good news is that when an expense is demonstrably linked to ministry, it can be reimbursed (or charged to a church-issued credit card). However, there are several parameters you will need to follow to make sure the expenses are appropriate, justified, and properly documented. See Richard Hammar's helpful overview of accountable reimbursement arrangements for more details.

Additionally, if your church reimburses mileage under an accountable reimbursement arrangement, you should note that the IRS recently released mileage rate guidance for 2022. Check out the details in this free article.

Also this week:

Have you purchased your copy of the 2022 Church & Clergy Tax Guide yet? Chapter 7 provides a more detailed explanation of reimbursement arrangements, including references to relevant Internal Revenue Code and IRS publications and notices. Visit our store to order your copy or become an Advantage Member to receive both a print and digital copy plus access to ChurchLawAndTax.com!