How do I report my HA with no other "church" income?

by confused
(Wisconsin)

We pastor a small church (35 people), and have not ever taken a salary, but had a pre-approved housing allowance (for up to the rental value of our home) if the funds ever became available. In August, 2016, we started taking a $500/mo. HA.

I was told I needed to report the HA on Schedule C, and I can take a deduction for having the church office in my own home.

We own our own home, but it is not completely paid for, so we have a monthly mortgage payment of $852/mo.

Does that create a wash then, and I would not have to pay any SE tax on the $2,500 HA (actually $1,344 after the deduction for business use of our home office).

If I can claim the mortgage payment, where is that entered...on what IRS form?

Do I not need to file a Schedule C?

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Apr 02, 2017
How do I report my HA with no other "church" income?
by: Anonymous - Rochester, MN

I can answer a portion of your question . . . HA is not exempt from your SET. Your HA must be included in the basis for your SET.

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Join in and write your own page! It's easy to do. How? Simply click here to return to Housing Allowance.

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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