Will Pope Leo XIV have to file and pay U.S. taxes, despite his strict vow of poverty?
Leo is the first American pontiff in history. And U.S. citizens, no matter where they live or who they are, are required to pay tax on their worldwide income—if they owe any.
Even if they don’t owe tax, they may have to file a return with the Internal Revenue Service. And whether it’s the pope or the rest of us, there are good reasons to file despite not needing to. This year, the filing threshold is $17,000 of gross income for a single taxpayer who, like Leo, is age 65 or older.
For the Chicago-born pope, however, there are unusual circumstances that could exempt him from owing or even filing U.S. taxes.
Here’s the background: In the Roman Catholic Church, rules about the ownership of property and income by Catholic clergy and members of religious orders vary widely. Not all take vows of poverty, and some poverty vows are stricter than others.
Members of the Order of St. Augustine, which Leo entered as Robert Prevost in his 20s, take the strictest vow of poverty, known as a Solemn Vow. On the night before they join the Order as full members, they sign a document renouncing their right to own property and saying they turn over all their goods to the Order.
The Wall Street Journal reviewed the pope’s renunciation, which he signed in 1981.
Fr. James Halstead, treasurer of the Midwest Augustinians that Leo joined, says that if a member earns a salary from teaching, it’s typically paid directly to the Order, which is a tax-exempt organization. This means that members don’t have taxable income.
If an Augustinian receives a gift or other income, he relinquishes that as well. Halstead adds that when the now-pope became a cardinal, he turned over a generous sum he received as a gift.