Page 7: Non-Clergy Wages and Other Earned Income
Skip this page if neither of you worked outside ministry, took nothing from a pension or IRA, received no Social Security, and put nothing into a retirement account.
You need this page if either of you had a non-church job, drew on a retirement account, received Social Security or a K-1, or made an IRA, 403(b) or 401(k) contribution.
What this page does. It covers everything you earned outside ministry: ordinary W-2 jobs, retirement distributions, Social Security benefits, jury pay, K-1s and your retirement contributions for the year.
Before You Begin
Please gather the following documents before completing this page:
- All non-clergy W-2 forms
- Forms 1099-R for retirement distributions
- Form SSA-1099 for Social Security benefits
- Any Schedule K-1 forms received
- Statements showing IRA, Roth IRA, 403(b), 401(k), SIMPLE, SEP, or 457 contributions
Having these documents available will make the process easier and help prevent omissions.
Completing the Page
No Non-Clergy Income?
If neither you nor your spouse received any non-clergy wages or other earned income during the year, simply check the box at the top of the page.
You can then continue directly to the Retirement Contributions section near the bottom of the page.
Non-Clergy Wages (W-2 Income)
Enter each non-ministerial employer on a separate line.
For each employer, provide:
- Taxpayer or Spouse
- Employer name
- Box 1 wages from Form W-2
Examples may include:
- Part-time employment
- School employment
- Administrative positions
- Retail or business employment
- Any work not performed as ministerial services
The organizer will calculate the total automatically.
Retirement Distributions (Form 1099-R)
If you received retirement income during the year, enter each Form 1099-R separately.
For each form, provide:
- Taxpayer or Spouse
- Name of the payer
- Gross distribution amount from Box 1
If any portion of the distribution was a Qualified Charitable Distribution (QCD), enter that amount separately in the designated area.
What Is a Qualified Charitable Distribution?
A QCD occurs when funds are transferred directly from an IRA to a qualified charitable organization.
These distributions often receive favorable tax treatment, so it’s important that we identify them correctly.
Social Security Benefits
If you received Social Security benefits, enter the amount shown on your SSA-1099.
Please use the amount from Box 5 (Net Benefits).
This is the amount we use when calculating the taxable portion of Social Security benefits.
Jury Duty Pay and Other Income
Use this section to report income that does not fit elsewhere.
Examples may include:
- Jury duty compensation
- Taxable awards
- Miscellaneous income
- Other taxable payments
Please include a brief description so we can determine the proper reporting treatment.
Schedule K-1 Information
If you received a Schedule K-1 from a partnership, S corporation, trust, or estate:
- Enter the entity name
- Indicate whether it belongs to the Taxpayer or Spouse
Important
Please be sure to include a copy of every Schedule K-1 with your tax documents.
The entity name alone does not provide enough information for us to prepare your return accurately.
Retirement Plan Coverage
Indicate whether the Taxpayer, Spouse, or both were covered by an employer or church retirement plan during the year.
Examples include:
- Church retirement plans
- Pension plans
- 401(k) plans
- 403(b) plans
- Government retirement plans
This information helps determine whether certain retirement contributions may qualify for a tax deduction.
Retirement Contributions
Please enter contributions made for the tax year by each individual.
Examples include:
Traditional IRA Contributions
Enter any contributions made to a Traditional IRA.
Roth IRA Contributions
Enter contributions made to a Roth IRA.
403(b) Contributions
Enter the employee contributions made through payroll deductions.
Other Retirement Plans
Include contributions made to:
- 401(k)
- SIMPLE IRA
- SEP IRA
- 457 plans
Providing complete contribution information helps us determine available deductions, credits, and contribution limits.
Common Mistakes to Avoid
Clergy W-2 Income Does Not Belong Here
Ministerial W-2 income should be reported on Page 5.
This page is reserved for non-clergy employment and other earned income sources.
Use the Gross Distribution Amount for Form 1099-R
When reporting retirement distributions, enter the amount shown in Box 1 (Gross Distribution).
Even if taxes were withheld, or part of the distribution was rolled over, we need the full distribution amount for proper reporting.
If a rollover occurred, please mention it in the comments section.
Qualified Charitable Distributions Must Be Sent Directly to Charity
For a distribution to qualify as a QCD, the funds must move directly from the IRA to the charitable organization.
If you received the funds personally and then donated them yourself, the distribution is generally not considered a QCD.
Use Social Security Box 5
When entering Social Security benefits, use the amount shown in Box 5 of Form SSA-1099.
This is often different from the gross benefit amount shown elsewhere on the form.
Report Only Your Own 403(b) Contributions
Enter only the contributions deducted from your pay and contributed on your behalf as an employee.
Do not include employer or church contributions in this section.
Contributions Made After Year-End May Still Count
Certain IRA contributions made during the following year may still be designated for the prior tax year.
If you made a contribution after December 31 that was intended for the current tax year, enter the amount and include the contribution date in the comments section.
Always Include Copies of K-1 Forms
One of the most common causes of delays in preparing returns is a missing Schedule K-1.
If you received a K-1, please be sure to upload or provide the complete document along with your organizer.
When You’re Finished
Before moving to the next page, take a moment to review all entries and compare them with your tax documents.
Be sure you’ve included:
- All non-clergy W-2 income
- Retirement distributions
- Social Security benefits
- K-1 information
- Retirement plan participation
- Retirement contributions
A complete Page 7 helps us accurately report your income, identify potential deductions, and ensure that all retirement-related tax benefits are properly considered.
If you’re uncertain where a particular item belongs, simply add a note in the comments section and we’ll be happy to review it with you.