Allowance added to wages on w-2

My allowance was include in my wages on my w-2 how can I fix this because now the IRS says I owe them more money. I have an agreement with the church I was getting a monthly allowance on my payroll check.

vickey's reply

Without knowing what type of allowance you are receiving I could not advise you what to do.

If it was a qualified housing allowance, your W-2 should be corrected. Housing allowance payments go in box 14 on a W-2. They are not included in box 1 on your W-2; however, there are other allowances that are included in box 1 such as a car allowance or Social Security allowance.

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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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