All Pastor's wages/housing allowance reported on 941

by Kirby
(Cambridge, OH)

I reported all wages/housing allowance on all of our 2018 941 forms this past year. Can I put this amount in box 1 of his w-2 and then put the H.A. in box 14? If so, can he then file his taxes by subtracting the amount in box 14 from box 1 to get his wages?

Comments for All Pastor's wages/housing allowance reported on 941

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Jan 06, 2019
Amend All 941s
by: Vickey

No. You will have to amend all of the 2018 941s and subtract out the housing allowance. The housing allowance payments are NOT included anywhere on a 941.

Reporting it all on the 941s and including all in Box 1 would cause the minister to pay income taxes on the nontaxable (federal income tax) housing allowance payments.

Reporting those payments again in Box 14 would cause the minister to pay double self-employment taxes on the housing allowance payments as well.

So, sadly your only recourse is to amend the 941s =(

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Join in and write your own page! It's easy to do. How? Simply click here to return to Minister's W-2.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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