I am a pastor and the board of the church of which I am also an incorporator and president agreed to give me a housing allowance. All the amounts I receive is a housing allowance and my monthly rent is more than the Housing allowance. Do I report the housing allowance I receive on Schedule C as Gross Receipts and my Rent on Other expense?
No. You would report the lesser amount presumably your housing allowance on a Schedule SE. You will owe self-employment tax (Social Security tax) on the amount, but not income tax. See this page for more details.
Join in and write your own page! It's easy to do. How? Simply click here to return to Housing Allowance.
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 =)