housing allowance for pastors provided w-2 instead of form 1099

If a church does as you suggest in this article, that is, to stop paying a pastor as self-employed (form 1099) and to pay him as an employee (withholding taxes and using form W-2), will he still be able to claim the housing allowance tax write-off without it being subjected to the 2% (see lines 21-27 on schedule A for form 1040)?

Comments for housing allowance for pastors provided w-2 instead of form 1099

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Nov 22, 2013
housing allowance for pastors provided w-2 instead of form 1099
by: Ken

The question is not how the 1099 vs the W2 effects the 2% line or any other line, but what is the correct way to report the Pastor's income to the IRS.

The only answer to that issue is that a W2 should be issued to the Pastor and housing allowance is reported on a different line than their income. It is the Pastor's responsibility to add any housing allowance not use for housing to add that to their income.

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