W-2 and H/A

by Dean
(Alabama)

How can correction be made to the W-2 once the treasure has sent them in?

The Total in box 1 was inclusive with the H/A and also listed H/A in bx 14- Am I wrong to think that the IRS now looks at bx 1 was the total received from the church when it really was not??

Box 1 is salary only not combined with anything else.

How should the H/A be deducted when the 1040 is done?

Answer

See this page for step-by-step instructions for corrected W-2s and W-3s.

The housing allowance should not be included in Box 1 on a W-2. You can include it in box 14 as a courtesy to your minister.

When it comes to reporting it on your 1040, you will include your qualified amount on your Schedule SE.

When it comes to actually claiming the exclusion for the housing allowance…it is limited. See this post for the limitations.

A housing allowance it not a credit; it is an exclusion. There is nowhere to deduct anything. It is simply an exclusion from income tax; however, you do have to pay self-employment tax on it unless you have an approved IRS form 4361 on file with the IRS.

Hope this helps,



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