Note: Unreimbursed employee business expenses are not deductible under the Tax Cuts and Jobs Act of 2017 (the “Act”) and OBBBA made this permanent. As a result, pastors and employees with unreimbursed mileage cannot seek tax relief on next year’s federal income tax returns.
You may also want read through this Q&A with CPA and Church Law & Tax Senior Editorial Advisor Michael Batts.
One Final Note
Churches with an accountable reimbursement arrangement can reimburse eligible employees who use their vehicles for church-related business. Employees and pastors must properly track and document their business miles under these arrangements.
RELATED: Church Property Tax Case: Lessons From a Costly Dispute
Unreimbursed employee business expenses are not deductible. Therefore, employees can no longer calculate a mileage deduction on their annual tax returns.
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