So our pastor moved into a new home in September and had housing expenses. We are allowing him to claim housing allowance.
I filed the quarterly 941 and accidentally included the part of his income that is housing allowance in the total amount reported.
Should I just go back and file an amended 941-x to correct the federal wages report?
I'm not 100% sure because the form talks about reimbursement and what not, but we are not reimbursing anything I would just be reporting another federal amount. Is this the right way to proceed?
1Comments
Housing Allowance is Nontaxable Income
VVickey
You must file an amended 941 as the amount of your pastor's compensation that was designated and paid as a housing allowance should not and CANNOT be reported on the 941 quarterly form as it is considered nontaxable income by the IRS.
You also will not report it in Box 1 of his W-2.
Your W-2s must match your 4 quarterly 941s.
You also will not report it in Box 1 of his W-2.
Your W-2s must match your 4 quarterly 941s.