Patriot Software Advisor

Housing Allowance in year of retirement.

by Ron
(Sarasota, FL, USA)

My housing allowance of $25,000 for 2020 was adopted by the Board in December 2019. I will be retiring on July 31. Can I claim on my 2020 tax return the full amount of $25,000 since I will be spending that sum in 2020 for my housing. Can my 2020 W2 state in the Housing Allowance box the sum of $25,000?

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May 03, 2020
Housing Allowance Exclusion
by: Vickey

Your 2020 W-2 should only include (in box 14) ...how much was designated and PAID as a housing allowance ...up to you retiring in July of 2020).

NOTE: you will only be able to claim on your 2020 tax return...the lesser of the following on your housing allowance exclusion:

1. the amount designated and PAID by your employing church as a housing allowance for the Jan to July time period.
2. the amount actually spent on eligible housing expenses from Jan 1st to July 31st.
3. The fair market rental value, including furnishings and appurtenances such as a garage, plus furnishings and utilities for those 7 months.

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