[Q & A] Is Benevolence Taxable Income?

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Belinda Whitfield, CPA explains how to report benevolence payments or assistance to the needy.

Video Transcript

Is Benevolence Taxable Income?

Hi, I’m Belinda Whitfield, and today is open Q&A day. I will tell you this is one question that comes up quite often, when it comes time to doing 1099 reporting. Someone will ask or mention that,

“Belinda, we have a lot of benevolence payments that we’re making to the needy. Sometimes we’re helping them with rent,” or you may even be helping them with utility bills and you wonder, should you be reporting that income or those payments that you’re making to those individuals on a 1099?

The response is no. Benevolence payments, that’s charitable support that you’re providing to your members is not taxable income, so you don’t have to track that. You don’t ask to ask them for a W-9, and you don’t have to report it on a 1099.

That’s my accounting tip for the day, be sure to subscribe to my channel and have a blessed day.

Got questions about church finances? Submit your questions to me on my website at https://churchcpa.com/contact-us/

Authored by: Belinda Whitfield

Belinda Whitfield is a Certified Public Accountant. Her firm Whitfield & Associates specializes in helping churches and non-profits obtain their 501c3 status, get control of their finances and stay in compliance with IRS and state guidelines.

There is 1 comment for this article
  1. Gaddis Vonberry III at 10:35 PM

    Need to Know just what to do

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