Papa Leo XIV can deal with a six -figure tax bill for your $ 33,000 pay

• As an American citizen, Pope Leo XIV It could be required to file a tax return to the United States Government and its tax obligation can reach six figures. As the United States imposes its citizens on its world revenue, Leo will have to present a refund, with some additional details based on the bank accounts that controls as the Vatican head, unless the United States has an exception to him or renounced his citizenship, according to experts.

One of the first things that Pope Lion XIV may need to do as a newly elected leader of the Catholic Church has nothing to do with religion, but finances: finding an accountant.

The United States is just a good handful of countries that imposing citizens who live abroad. Thus, thanks to his American passport, Chicago’s 69 -year -old Pope, known until last week as Robert Prevost, will probably have to submit a tax return to the United States Government like any other citizen, they said experts. Fortune.

As a pope, Leo XIV is entitled to a salary of 30,000 eurosor about $ 33,000 per month, which puts its annual benefits at about $ 396,000 a year. Unless an exception is given, the first American pontiff may have an estimated tax obligation of $ 135,287, which includes both the federal and self-employed tax, based on his salary, said Hector Castaneda, a Washington-headquartered accountant. Fortune.

He told Edward A. David, assistant professor of the Department of Theology and Religious Studies at King’s College London Washington Post It is difficult to know if the United States will insist on collecting the Pope’s tax return and it may be possible for the Government to exempt it. Still, said Timothy Fograty, accounting teacher at the Western Reserve University Fortune The pope is likely to be not exempt.

“ Although the discretion that may be supported, it is unlikely that the new pope will be exempt from US income taxes.The United States tax law demands the right to impose all citizens on their income around the world.There is no exception for religious staff or for people who are diplomats/head of foreign countries such as Vatican, ” said Fogarty.

The Treasury Department did not respond immediately FortuneThe question about whether the pope could receive a exemption.

From 2015 to 2023, Leo XIV served as Bishop of Chiclayo, Peru, where he probably already treated the United States tax system with a high reach. But because of their highest salary, If you accept itAnd its control over the Vatican’s financial accounts, submitting a tax return may be more complicated than ever.

The presentation of a tax return is mandatory for all citizens and, if the laws are applied as they would be for all other citizens, Leo XIV can face a strong tax bill.

“It does not matter where a religious leader is based, we still have to pay us taxes on their income if they keep their citizenship in the United States,” Castaneda said.

A spokesman for the IRS refused to comment Fortune On the tax obligation of Pope Francis.

“By law, federal employees are prevented from publishing information on the tax return,” the spokesman said.

However, the pope may have some options, but not many, to reduce his tax bill, said Linda Jensen, the founder of Heart Financial Group, Fortune.

Apart from the standard deduction of $ 14,600, Leo can be eligible to deduce the costs associated with his home if he receives a benefit or living in homes provided to the Vatican such as the papal apartments or the favorite residence of Pope Francis, Casa Santa Marta.

The IRS allows religious leaders to deduce the minor from the official housing, the actual housing costs or the fair rental value of the home (including furniture and public services), of its tax bill, said Jensen.

Jensen said that the members of the clergy are considered self -employed with the purpose of Social Security and Medicare taxes, but if Pope Leo previously claimed a religious objection of public insurance consciousness in his career, he may be out of the hook for these taxes.

North North -Americans who make money abroad can deduce $ 130,000 of foreign revenue, but it is doubtful that it would be applied to Leo XIV, as the rule excludes revenue obtained from a foreign government, such as the Vatican.

North -American citizenship of Pope Leo XIV may also have unnoticed a significant financial complication in the Vatican. By virtue of the Foreign Account Tax Compliance Act, which aimed at reducing the high seas tax evasion, the Vatican must inform the IRS of the details of the North -Americans’ bank accounts and broker, which in theory would include Leo XIV’s accounts, said Jensen. Due to his authority about out -of -sea accounts as Vatican Head, Pope Leo XIV may also need to present a Form 8938 With the IRS.

Finally, North -American citizens with “signature authority” or final control of a bank account containing more than $ 10,000 must also submit a Foreign bank account report to the Financial Crime Execution Unit of the Treasure Department. From 2023 the Vatican Bank had $ 6.1 billion.

“As a citizen of the United States abroad with important foreign links, he has complex information obligations. Even the Pope could need a great CPA,” said Jensen.

This story originally presented to Fortune.com

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