Senior missionary finances

[gsbbyu]

A senior couple in my ward who will depart for a mission next month informed me that they plan to pay their monthly payments ($1550/month, consisting of the $1400 housing cap + $150 car allowance) into the main ward missionary fund, as opposed to the sub-account in their name. Their reason is they do not believe their payments will be tax-deductible if they pay them into an account that has their name associated with it. Assuming they go ahead with this plan, I assume I will need to transfer their payments into their sub-account so that they can be matched up with the monthly charges.

I respect this couple's risk aversion with how they do their taxes--and transferring their funds each month is not a hard thing to do--but for my own education, is there anything unique about senior couples' payments that makes them different from the thousands of missionaries who pay into their own sub-accounts and still take tax deductions? I can kind-of see where they might be coming from, given that the $1400 amount is specifically related to housing and the $150 is specifically related to their car use (as opposed to $400 for their "mission" like young single missionaries), but still, it seems like the same principle applies to everyone: they are paying an amount that is nonrefundable and the money is going to the Church rather than directly to their own landlord. Is that true, or are senior couples in a unique situation?

I emphasize, I am not looking for tax advice on this forum. I am simply trying to understand the difference, if any, between senior couples' payments and young single missionaries' payments.

[jdlessley]

This couple is overly concerned about their monthly donation to their assigned monthly housing cost. You can read the notices dated March 31, 2015, December 10, 2011, November 7, 2011, September 1, 2011, and May 27, 2011, in the Official Communication Library regarding these housing donations. The following from the March 15, 2015, and December 10, 2011, notices state "All donations, whether donated to a ward or branch missionary fund or the General Missionary Fund, become the Church’s property and are not refundable." This in effect treats the donations made by, or for, senior couple missionaries the same as donations made by, or for, single missionaries to a ward missionary subcategory under the equalized payment system. Donations to subcategories of the ward missionary category are treated the same as donations made to the parent ward missionary category in every respect. Those subcategories are only for tracking purposes.

[leslieannehill]

Hello. I have 2 questions, please.

1-Could you please explain if senior missionaries who serve a year or longer in a foreign country become tax residents of that country?

2-Are the expenses for the senior missionaries tax deductible since they are volunteers? I know that someone touched on this a bit in this thread, but could someone please simplify for me. Thank you.

[russellhltn]

Hello. I have 2 questions, please.

1-Could you please explain if senior missionaries who serve a year or longer in a foreign country become tax residents of that country?

2-Are the expenses for the senior missionaries tax deductible since they are volunteers? I know that someone touched on this a bit in this thread, but could someone please simplify for me. Thank you.

General Handbook 24.3.4.2 indicates that senior missionaries serving away from home contribute a pre-defined amount to the Ward Missionary fund and that it covers "housing and vehicle costs". Contributions to the Ward Missionary fund will appear on the year-end Official Tax Statement issued by the church.

Beyond that, you're going to need to consult with an appropriate tax specialist. For question #1, it would depend on the laws of that country.

[ssuicsmike]

Can health insurance be deducted for tax purposes?

[jdlessley]

Can health insurance be deducted for tax purposes?

You'll have to discuss that with your tax advisor.

[russellhltn]

Can health insurance be deducted for tax purposes?

You'll have to ask a tax adviser about that one.

[adkinsjm]

In general (consult a tax advisor for definitive advice), medical expenses in excess of 7.5% of your AGI can be deducted if you itemize.