by Andrew Kwan
(Pasadena, CA USA)
If a pastor already opt out of SE tax on his W-2, is the housing allowance also not subject to SE tax?
2Comments
IRS Approved Form 4361
VVickey
With an IRS approved Form 4361 on file, a minister would not be subject to self-employment taxes on ministerial gross wages and housing allowance payments BUT...
I’m confused :-( There is no place on the W-2 for you to record if a minister has an approved Form 4361 on file???
Now if they have been approved by the IRS to opt out of SE taxes then there is a place on his Form 1040 to note this. You would enter “Exempt—Form 4361” on the dotted line next to line 56.
I’m confused :-( There is no place on the W-2 for you to record if a minister has an approved Form 4361 on file???
Now if they have been approved by the IRS to opt out of SE taxes then there is a place on his Form 1040 to note this. You would enter “Exempt—Form 4361” on the dotted line next to line 56.
Housing allowance and SE tax
AAnonymous in NC
Your gross income on your W-2 plus the housing allowance is subject to Self Employment Tax.