how do you calculate what a pastor salary/his housing allowance

Please tell me if this is correct we calculate a pastor's monthly housing multiply it by 12 and that is what his total housing is yearly. If a pastor makes 24,000 a year divided by 12 equal $2,000.00 a month minus his housing allowance $1,500.00 equal $500x12=$6,000.00 as his salary for that year and he needs to file the taxes on that $6,000.00 or does he have to pay the taxes on the housing as well.


I hope this is not confusing to you.

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Feb 19, 2013
Salary Calculation
by: GB

This is the only way that I know of to calculate the salary. I agree with your numbers.

The Pastor would receive a w2 which lists $6,000 in box 1; any federal withholding in box 2; and the housing allowance (labeled as such) of $18,000 in box 14.

It's probably best to follow the w2 preparation instructions given here: http://www.freechurchaccounting.com/example-of-pastors-W-2.html

GOD Bless!

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