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)

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

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Jun 20, 2021
Box 1 of a W-2 Reflect Taxable Wages Only
by: Vickey

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.

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Join in and write your own page! It's easy to do. How? Simply click here to return to Clergy Tax Q&A.

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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