How is Housing Allowance Reported on Form 941?

by Karleeall
(New Hampshire)

How and on what line is housing allowance reported on Form 941? Also is this amount reported on Line 2 on Form 941?


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Comments for How is Housing Allowance Reported on Form 941?

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Jul 17, 2010
Housing Allowance
by: Nick

Housing Allowance is not reported on Form 941. It is excluded from income reporting by the church. It is only taxable to the minister if it exceeds the amount spent for qualified housing expenses or the fair rental value of the home plus utilities.

Mar 06, 2013
Do NOT Report a Housing Allowance on Form 941
by: Vickey

Nick is right. You do not report a housing allowance or parsonage FRV on a Form 941.

A 941 is a federal form used to report wages and withholding...not a housing allowance.

See this page for instructions on how to report a housing allowance: http://www.freechurchaccounting.com/housingallowance.html

However, please be aware that ministers do owe self-employment taxes on the lesser of the 3 amounts shown on that page and then as Nick stated, you would need to report the excess HA payments (if any) as income and pay the appropriate taxes on it.

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