Housing Allowance reported on 941, file a 941-x to amend or just leave it?

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?

Comments for Housing Allowance reported on 941, file a 941-x to amend or just leave it?

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Jan 23, 2023
Housing Allowance is Nontaxable Income
by: Vickey

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.

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