1099 or W-2 for working minister

If a minister is employed full-time with another job and receives a $500 housing allowance from the church, he pastors, would he receive a 1099 and or a W-2? The church at this time cannot afford to pay him Full-time salary.

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NO 1099 for a Housing Allowance
by: Vickey

Housing Allowances are never recorded on a 1099.

Those payments as considered "nontaxable" in regards to federal income taxes...even though they are subject to self-employment taxes... if a minister has not "opted out"of the SS System.

You can record those HA payments in BOX 14 on a W-2 as that box is simply an informational box.

Or you can simply issue him a "notification" letter from the church stating how much "housing allowance" the church gave him in a calendar year.

I have an example of that letter on this page:


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