Church employee(director of music) living in church housing

by Peg
(Yardley, PA)

We have a director of music living in church housing....we have treated it as part of his compensation. He is not a minister and to the best of my knowledge is not ordained......is his housing a taxable item and if so, how does the church treasurer know how much to tell him is taxable?

2Comments

but is a W2 needed?

PPastor Manny

I understand its taxable as SE, the question is whether or not the church has to generate a W2, if I'm the only person receiving any compensation (Parsonage only)

Value of church housing

LLewis in NC

Yes this would be taxable. The value included on the W-2 would be the fair market rental value, plus any utilities paid by the church.