FICA being withheld from Housing Allowance.
I am working on a tax return for a minister who is an employee of the church and receives a housing allowance. On the w-2, the housing allowance in included in box 3-Social Security wages and Box 5 Medicare wages and SS and MC is withheld. Is this correct? How is this handled on the Tax Return.
Box 1 only includes the taxable income and does not include the housing allowance.