In box 1 for W-2 for a minister... is the the gross minus the pre-tax items such as medical and dental

by Beverly
(San Diego)

I need to know what is included in Box 1 on the W-2 for a minister... is it the gross salary and all the allowances minus the housing and 401K.. or is it that plus all the pre-tax (dental-medical-vision)

1Comments

Box 1 of a W-2 Reflect Taxable Wages Only

VVickey

The amount reported in box 1 of a W2 should not include tax deferred deductions such as a 401k or 403b (most common for ministers) or pre-tax deductions such as medical insurance...if they qualify as "pre-tax".

Please contact your insurance provider or a benefit expert to confirm their payroll deductions are indeed "pre-tax".

Housing allowance payments are NEVER reported in Box 1 or ANYWHERE in a 941 form.

Be aware that your quarterly 941s MUST match the amount reported on those W-2s, so if you discover you have done them incorrectly, you will have to amend all previously filed 941s for the year.