Pope Leo XIV may face a six-figure tax bill for his $33,000-a-month paycheck

• As an American citizen, Papa Leo XIV Can file taxes with US government, and his tax responsibility can reach six figures. Because the US taxes its citizens on their worldwide income, Leo will need to file a return, with some additional details based on the bank accounts he controls as head of the vatican, unless the us makes an exception for him or he renounces his citizenship, experts said.

One of the first things Papa Leo XIV should do as newly selected leader in the Catholic Church has nothing to do with religion, but find an accountant.

The US is just a few countries Those taxable citizens living abroad. Thus, thanks to his American passport, 69-year-olds were born in Chicago, known until the previous week to file a government tax like any other citizen, experts told wealth.

Like Pope, Leo XIV is entitled to a salary to 30,000 eurosor about $ 33,000 per month, which puts his annual earnings about $ 396,000 per year. Unless given an exemption, the first American Pontiff can have an estimated tax responsibility of $ 135,287, engaged in federal tax and self-based accountant hectorneda wealth.

Edward A. David, an assistant professor of the Department of Teology and Religious Studies of King’s College London, speaking to WASHINGTON POST It is difficult to know if the US presses the collection of Pope’s tax return, and it is possible for him to get rid of the government. However, Timothy Fogarty, a Professor of Accounting in the Western Reserve University case, told wealth Maybe the Pope is not going away.

“Even if there is no account for discretion that can be carried, the new Saint Pope cannot be free from the world’s income staff.

The Department of Treasury does not immediately respond wealthThe question is whether the Dad will receive an exemption.

From 2015 to 2023, Leo XIV served a bishop of chicleta, Peru, where he was likely to deal with far US tax system. However, due to his higher salary, Should he accept itAnd his control over the Vatican Financial Accounts, the filing of a tax return will be more complicated than before.

Filing a tax return is obligated for all citizens, and if laws are applied as they are for every other citizen, Leo XIV can face a heavy tax tax.

“Everywhere where a religious leader is based, they still have to pay taxes on their income if they have kept their US citizenship,” Castraneda said.

A spokesman for IRS refuses to comment on wealth about Pope Francis’ Bace with the ability.

“By law, federal employees are prohibited from revealing tax return information,” as a spokesman.

However, Saint Pope may have some, but not many, options for reducing his tax bill, Linda Jensen, the founder of the financial group, told wealth.

In addition to the $ 14,600 standard reduction, Leo can be eligible to transform costs related to Papal Onta Santa Santa Martha.

The IRS allows religious leaders to deduct the lesser of an official housing allowance, actual housing expenses, or the fair rental value of the home (including furnishings and utilities), from their tax bill, said Jensen.

The clergy members are considered self-employed for the purposes of Social Security and Medicare taxes, but if Dad Leo first gained a religious religious in his career, he might be from taxes.

Usually, Americans who earn money abroad get $ 130,000 foreign earnings, but it is doubtful available to a foreign government, such as the Vatican.

Pope’s American citizen is probably unattended carrying an important financial complication to the Vatican. Under the Account Account Account Account, which is intended to crack outside the exterior tax outside of bachso, which are American accounts, which include American accounts, with Jensen accounts, says Jensen. Due to his authority on offshial accounts as Vatican President, Papa Leo XIV may also need to file a Form 8938 with the IRS.

In the end, US citizens with “signature authority,” or final control over a bank account with more than $ 10,000, it should also file a Foreign Bank Account Report In the financial unit of the financial financial crimernes enforcement unit. As 2023, the Bankan Bank Holds have $ 6.1 billion.

“As a US citizen abroad with significant foreign relations, he has complex reporting obligations. Even the pope may need a great CPA,” says Jensen.

This story originally shown Fortune.com

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