Exemption From Self-Employment Tax and Housing Allowance

by Douglas Hewitt
(Riverview, Florida)

I just read your article regarding the exemption of Housing Allowance from gross income.

I'm a bi-vocational minister at a local church who is compensated 100% through a housing allowance.

Do I need to opt out of Self-Employment Tax in order to NOT report this allowance (line 14) of the W2?

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Join in and write your own page! It's easy to do. How? Simply click here to return to Designating Housing Allowance.

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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