Allocating Housing Allowance

by Marcella
(Amarillo, TX USA)

Our pastor passed away the first week of May 2016. He was projected to have an $18000 housing allowance that we would have deducted from his gross salary. Do I only give him credit for 4 months of the $18000 from his salary? 18000/2*4 $6000?

Comments for Allocating Housing Allowance

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Jan 20, 2017
You are Correct
by: Vickey

I am so sorry for your loss...although his gain.

You are correct in your amount and allocation for his housing allowance.

Jan 25, 2017
by: Anonymous

Do I have to input the pastor's housing allowance on the w2 if it's deducted from his salary gross pay for tax purposes?

Vickey's reply:
The housing allowance has to be deducted from gross salary (reported in Box 1) and reported (preferably) in Box 14 which is just an informational box for the employee.

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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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