EARNINGS OF CLERGY MEMBERS OR RELIGIOUS WORKERS (MAM)

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Clergy members and religious workers receive different types of pay and allowances. Treatment depends upon the type of medical assistance received.

Clergy Member/Religious Worker Pay: Any income received as salary, including bonus pay, overtime, or any other pay.

Treatment: This income is considered self-employment income and may be reduced by the cost of doing business.

MAGI MA: Earned income unless the income is tax exempt.

Non-MAGI MA: Earned income.

Other Clergy Member/Religious Worker Income: Any income or offerings received directly from members of the congregation or the public, such as fees for performing marriages, baptisms, funerals, or other personal services.

Treatment: This income is considered self-employment income and can be reduced by the cost of doing business.

MAGI MA: Earned Income.

Non-MAGI MA: Earned Income.

Clergy Member/Religious Worker Housing Allowance: Income or benefits received to assist in the clergy member obtaining or retaining housing.

Treatment:  MAGI MA: Excluded Income.

Non-MAGI MA: Unearned income.

Vow of Poverty: A clergy member or religious worker who has taken a vow of poverty and is receiving income for services required by or performed on behalf of the religious order is not taxed on that income as it is considered to be the income of the religious order.

Treatment: MAGI MA: Excluded income.

                  Non-MAGI MA: Counted income (earned, unearned, or in-kind, depending upon

the source and nature of the income)

References: He-W 601.03(k); He-W 601.05(c); He-W 601.08(k); He-W 652.02; He-W 654.01; He-W 654.07; RSA 167:4, I(a); RSA 167:7, IV; 42 CFR 435.603(e); IRS Publication 517 – Social Security and Other Information for Members of the Clergy and Religious Workers [https://www.irs.gov/pub/irs-pdf/p517.pdf]; POMS: Non-MAGI Vow of Poverty [https://secure.ssa.gov/apps10/poms.nsf/lnx/0500810700]