Housing allowance is part of the my husband's salary

by Michelle
(Tennessee)

Part of my husband's salary is designated as a housing allowance. So does that part that is housing allowance go on line 1 of the W-2?

Say for example his salary is $25,000 per year. Of that, not in addition to it, $7,500 is designated as housing allowance.

I know the $7,500 would be listed in #14 of the W-2. But would the #1 box include it? In other words, would it be $25,000 or $25,000 - $7,500 = 17,500? Thank you.

4Comments

W2 from State

AAnonymous

This W2 is from the State and they wrote a letter saying 25% of salary listed in box 1 is housing allowance. How do I show on the tax return its non taxable for taxes?

Reporting a Housing Allowance Only on a W-2

VVickey

yes, you can file a Housing Allowance Only on a W-2 in box 14 and fill the rest of the appropriate boxes with zeros.

See an example of a W-2 for a minister here: https://www.freechurchaccounting.com/example-of-pastors-W-2.html

Concerned

AAnonymous

Can housing allowance be the only reported amount on w-2 in box 14

Do Not Report Housing Allowance Payments in Box 1

VVickey

Housing allowance payments should never be reported or included in Box 1 of your W-2.

So...per your example...$17,500 would be reported in Box 1 and the $7,500 in housing allowance payments would be reported in Box 14.