housing allowance paid to or for the pastor

by delsa
(OH)

how to handle: pastor housing expense is paid for him by the church, instead of him receiving a housing allowance?

Comments for housing allowance paid to or for the pastor

Click here to add your own comments

Feb 08, 2014
 Your church is creating taxable income for the pastor
by: Bill OConnell

Your church is likely creating taxable income for the pastor. Unnecessarily.

Your question does not have sufficient detail to provide a precise answer. However, this appears to be a case where the church is paying personal expenses on behalf of the pastor. This is a condition that creates taxable income AND income that is subject to the Self Employment tax.

This is the worst of all possible tax conditions. I suggest you consult with a qualified CPA who is familiar with clergy compensation and taxation.

My firm may be found at www.wisdomoverwealth.com.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Minister's W-2.



Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?

Recommended Resource!

Online classes/courses on how to use QuickBooks for a church! 

Click here for more details!

Use coupon code "FCA" for 10% discount!