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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Feb 18, 2015
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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Join in and write your own page! It's easy to do. How? Simply click here to return to Minister's W-2.

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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