One of the questions that I am getting a lot of as churches prepare for charge conference is about the Accountable Reimbursement policy and what qualifies for reimbursement.
In 1992, when the IRS reclassified United Methodist pastors as employees, they lost the ability to deduct certain expenses they incurred related to doing ministry, items such as the mileage costs of using their own vehicles for church purposes, the costs of purchasing and maintaining vestments, the costs of continuing education required by Annual Conference, and the costs of attending Annual Conference.
The IRS does allow employees to be reimbursed for the personal expenses incurred on behalf of their employer. There are certain requirements that must be met.
- A policy established by the Church Council stating what may be reimbursed and the amounts allowed.
- Regular submission of documentation by the employee.
- Below is a copy of the Accountable Reimbursement Policy created by the Annual Conference that meets the IRS requirement. You may download the form and use for your church.
Basic Church Administration 