Housing Allowance subject to SE tax?

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?

Comments for Housing Allowance subject to SE tax?

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Apr 10, 2012
Housing allowance and SE tax
by: Anonymous in NC

Your gross income on your W-2 plus the housing allowance is subject to Self Employment Tax.

Feb 07, 2013
IRS Approved Form 4361
by: Vickey

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.

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

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 =)

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