Housing Allowance ?

by Gale
(Roseland Virginia, US)

Our church has a parsonage. We pay our pastor a salary and have designed $9600 as housing allowance. The housing allowance is not added to the gross wages. I was told by a CPA of a former minister that the housing allowance should be subtracted from the amount of gross salary in box 1 on the W2. I can not find this in writing anywhere. Is that a correct statement?

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Housing Allowance
by: Lewis in NC

The housing allowance for qualifying clergy is an exclusion from the salary before reporting in Box 1 of the W-2. Read more about it under Minister Taxes at the "tabs" to the left of this screen.

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