The Pope vowed poverty. He may still need to record American taxes.

Will Pope Leo XIV have to file and pay American tax, Despite the strict poverty fast?

Leo is the first American Pontif in history. And American citizens, no matter where they live or who they are, need to pay taxes on income around their world – if they are outstanding in any way.

Even if they do not tax, they may have to file returns with it Internal Revenue Service. And whether it is Pope or the rest of us, there are good reasons to file despite not needed. This year, filing threshold is a $ 17,000 gross income for a single taxpayer, like Leo, 65 or older.

For the Pope born in Chicago, however, there are unusual conditions that may allow him to exempt or even American taxes.

Here is the background: In the Roman Catholic Church, members of the rules and religious orders regarding the ownership of property and income by the Catholic priests vary widely. Not all take poverty vows, and some poverty pledge are strict than others.

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A member of the Order of St. Augustine, which Leo entered as Robert Prevost in its 20s, takes a strict vow of poverty, known as a serious fast. At night before joining the order as full members, they signed a document, who renounce their own rights and say they turn all their belongings into order.

The Wall Street Journal reviewed the Pope’s renunciation, signed in 1981.

Father James Hellested, the treasurer of the Midwest Augustinian, the Leo attended, says that if a member Educates salaries from teaching, It is usually paid for direct order, which is a tax-free organization. This means that members do not have taxable income.

If an Augustinian receives a gift or other income, he also abandons it. Halstead says that when the Pope Cardinal became now, he received a generous amount as a gift.

In addition, members do not pay in the medicare and social security personally. Instead, the order pays the levy from their income on their behalf.

IRS says that tax collection is more efficient this year, receives more than 5%

As a result, Augustinians do not record separate American tax returns, and Halstead says that the order has no record of filing any returns of Leo. IRS allows it; For more information, see IRS Publications 517 for the pastor.

Note: Not all pledge of poverty lead a tax exemption. The IRS has pursued and won matters related to poverty pledge which was questioned.

Other discussions about Leo’s American taxes have focused on potential income – not a strict vow of poverty may mean that it has no income or responsibility to file.

Now that he is the Pope, Leo and his advisors need to consider what to do next. The Pope remains an Augustinian, and Halstead hopes that he can continue his previous practice. In that case, any payment or stipend for the pope can go directly to Augustinis and may not be required to file.

Vatican officials did not respond to a request for comment Pope’s pay Or tax filing. A spokesperson of the Treasury Department also refused to comment, citing the taxpayer-prone laws.

If Leo determines that he has income and needs to file a US return, he can withstand issues that hurt many Americans living abroad. Paper action for exites is often very high, and there is a gap in the rules to prevent dual taxation. During his 2024 campaign, President Trump advocated to change the rules, but on Wednesday does not touch the House’s methods and the bill approved by the Means Committee.

If he files, Leo will benefit from exclusion of foreign earned income, a tax brake that earns income by Americans abroad. The limit for a single filer for 2025 is $ 130,000 – but to claim, a taxpayer must file.

About 20k IRS workers are offering to buy

In addition, the Vatican authorities need to investigate whether Leo should record forms informing American authorities of some foreign accounts or assets. The FBAR form is often applied to expand with foreign financial accounts of over $ 10,000 during the year, while IRS Form 8938 applies to various foreign financial assets of higher value.

One thing Pontiff probably does not have to worry to tax his residence, food, travel, clothes and other expenses paid by the Vatican. Michael Greatz, a former officer and emeritus professor of the Treasury at Yale Law School, says that in the case of the Pope he is not counted as a taxable income as they are his employment conditions.

Even if the Pope does not need to file American tax returns, some tax professionals recommend that he – and with other Americans with very low income – file anyway.

One reason is a good way to stop filing returns Tax ID theft. This occurs when a fraudster uses someone else’s social security numbers and date of birth – such as as the Pope – to correspond for himself. Tax ID theft is cumbersome to rest, and regular filing of returns makes it difficult for fraudsters to work. Leo can also get a special IP PIN number that prevents someone else from filing with his ID.

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A CPA in Matthew Place, Chicago, which handles tax filing for members of several Catholic priests and religious orders, also advises its customers that IRS will record. During the epidemic, it was difficult for their pastor customers who did not file their excitement payments, they say.

David Lifeson, a CPA with Crowe that advises global income Americans, say there is another important reason to file. Submitting returns in IRS activates the law of limits, which does not start until then. For specific tax issues, the law is three years.

He explains, “Filing tax returns is a way for Leo to show respect for his citizenship, and it actively confirms that he is very low without doing anything.”