Reporting Housing Allowance on a W-2

by Stacey
(Clovis, CA)

I am receiving conflicting information regarding reporting a housing allowance on a W-2--how much of our pastor's housing allowance must be reported on his W-2 in Box 14?

I have had one Treasurer say 50% and a couple of others say 100%.

Any information on this would be helpful.

God Bless.

Answer

The church is not required to report the minister's housing allowance to the IRS.

However many churches choose to report it in Box 14 of the minister's W-2 (which is labeled “Other”) as a courtesy to the minister.

In which case you would report 100% of the housing allowance.

Or, churches can just include the amount of the housing allowance in a separate letter to the minister. (This separate letter should not be sent to the IRS and will not be included or attached to the minister's personal tax return.)

See this page for more information on a
clergy's housing allowance.



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