Issued Minister Form 1099-Misc.
For this 2010 year, I will issue my Pastor Form 1099-Misc. In box 7 "Nonemployee Compensation" I believe I just need to put his base salary (For Income tax purpose, Housing Allowance is not subject to Income Tax).
However, for SECA purpose, Housing Allowance is subject to SECA tax. Which box on Form 1099 I need to put Housing Allowance? Is that box 3 "Other Income"??
Thank you for your help,
God Bless you and your family.
Thank you, Ekin.
A housing allowance is not recorded anywhere on a 1099-Misc because housing allowances are for dual-status ministers who are “employees” of the church.
Read this article in The CPA Journal: Minister Housing Allowance Presents New Challenges to better understand the IRS section 107 that allows for housing allowances.
So housing allowances are usually recorded in box 14 of an employee’s W-2 or simply stated in a church issued letter. See this post for an example of such a letter.
Hope this helps,
Church Accounting Package
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