Housing Allowance Approvals

by John Daniel
(Tallapoosa, Georgia)

We began paying our pastor a salary on January 1, 2019. He will receive a 1099 for 2019. At the time, we discussed housing allowance but failed to get approval from the church for the allowance. Is it possible to now get the approval and have it retroactive to January 1, 2019?

Comments for Housing Allowance Approvals

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Aug 21, 2019
A Housing Allowance is Never Retroactive
by: Vickey

A Housing Allowance can Never be retroactive, so the compensation paid up to the time of approval...will be considered salary.

BUT remember housing allowance payments made to a minister by a church are NEVER included/reported on a 1099, Form 941, or W-2/W-3.

Also ... most ministers are considered employees of a church by the IRS and their compensation would be reported on a W-2 ... not a 1099 which is for independent contractors.

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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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