Considered Taxable Income?

[Crank]

Medical deductibles paid by a third party?

 

I believe this may be treated as income to the TP but cant find a reference to it.  Any insight is appreciated.

 

 

[kcjenkins]

A bit more detail, please.  What is the relationship between the various parties?  

[Crank]

Clergy with his medical deductible paid by the church.

[Jack from Ohio]

Medical deductibles paid by a third party?

 

I believe this may be treated as income to the TP but cant find a reference to it.  Any insight is appreciated.

 

Clergy with his medical deductible paid by the church.

You are correct.  In the case of a Clergy, it must be added to box 1 of the W-2 and IS subject to SS and Medicare.  This is a function of the ACA.

[Crank]

Thank you Jack!

[MAMalody]

Of course, we are assuming the pastor does not have an approved Form 4361. Of course, Jack realizes clergy are not subject to ss/mc, at least, in the normal W-2 sense, however, they are normally subject to SE tax.  If there is an approved Form 4361 there would be no SE tax.