Can Box 1 include Housing Allowance?
by R Kreider
I have previously read "do not include clergy Housing Allowance in Box 1 taxable income" so I know that's the recommendation.
However, if this does happen (our payroll service created W-2's including it in box 1 but not box 14) will it cause problems, as long as the pastor can deduct the appropriate amount from taxable income reported on SE forms?
Pastor is aware of the approved amount, and has a letter of documentation.