HA and W-2

by Phil
(Michigan)

To clarify, the church is responsible for designating the Housing allowance; the minister is responsible for tracking the actual expenses and/or the fully furnished rental value, correct?

On the W-2, the church would simply put in box 14 the HA that was designated at the beginning of the year. If the minister did not spend the entire amount, it would be his responsibility on his tax forms to put in the proper amounts?

So, for example, the Minister receives $50,000 for wages, $12,000 of which is a housing allowance. In box 1 on the W-2 would be entered in $38,000, and box 14 would be $12,000 for the HA. If the minister only actually spent $10,000 in housing expenses then he would be responsible for reporting $40,000 of income and $10,000 for his housing allowance even if his W-2 reported the 38,000/12,000 numbers.

Is this correct?