Due to COVID, receipts of cash contributions were low.
The church had me do a W2 for pastors housing allowance. The fact is they now are asking me what they should do.
The pastor in fact did not receive his allowance due to the lack of funds (very small church).
I was thinking since a W2 was issued as receipt of funds he could amend his personal tax return and claim a charitable contribution for 2021.
It seems reasonable, but I am not confident to recommend this due my lack of understanding of housing allowances accounting.
The pastor does have a full time job other than his ministry and only receives a housing allowance from the church. Thank you - Michelle
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