Housing allowance for youth/music minister

by Ramona

Do you have to report Housing allowance for a youth/music minister that you do a misc 1099 on?

I have just recently taken over this job and the prior secretary gave a misc 1099 for his salary but only showed what he was given checks for and he lives in a house that the church owns. The church pays his water and sewer he pays the rest of his utilities. Just wondering?


vickey's reply

There is no place to report the housing allowance on a 1099 because only a dual-status minister is eligible for a housing allowance.

See this page for definition of a dual status minister.

Personally I would be worried that a youth/music minister could not meet all 5 tests of the IRS for a dual status minister.

If so, you would have to report all compensation as income.

I would also look up the state and federal labor laws on determining if someone is an employee or independent contractor.

Most paid youth/music ministers are considered employees and their compensation should be reported on a W-2 and FICA tax withheld (if he does not meet all 5 IRS tests for a dual-status minister).

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