Salary & travel expense broken down

Can a pastor receive his salary in two parts? 60% for salary and 40% for travel expense.

He is also given a parsonage. How should this be
reported on his W-2? Is he required to only report
his salary?

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Comments for Salary & travel expense broken down

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Sep 05, 2010
Travel Expenses
by: Vickey

It would depend on how the travel expenses were paid. If it was part of an account reimbursement plan the travel expenses would be tax-free, but it would only be tax free for the actual expenses. It could not be set up as a percentage.

My advice is to talk to a tax professional. They would know what should be included on his W-2 and what he can deduct and what he cannot.

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