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CHURCH ACCOUNTING PACKAGE

Housing Allowance

by Calvin Bishop
(Las Vegas, NV USA)

Is Housing Allowance included on Form W-2, Box 1 (Wages, Tips, Other Compensation)

Comments for Housing Allowance

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Sep 10, 2022
 Do NOT Report Housing Allowance Payments in W-2 Box 1
by: Vickey

No. Housing allowance PAYMENTS are NEVER included in Box 1 on your W-2 as it is considered "nontaxable" income and everything reported in Box 1 is taxable.

Housing allowance payments can be reported in Box 14 on your W-2... as it is an "informational" box (for the recipient).

The IRS and SS do not pay any attention to it, so (unless you have opted out of Social Security) you will pay self employment (SS) taxes on those payments by reporting them on a Schedule SE.

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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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