Medical Allowance for Pastor

by Janice
(Washington)

Question regarding a medical allowance for our pastor:

I am the bookkeeper at our Church and am trying to finish up the W-2's for all employees.

Our Pastor has a non-taxable Medical Allowance specified each paycheck. The church does not pay any of his medical premiums or expenses.

He has established his own HSA account through a bank and he personally deposits the allowance in that account and pays out of that account. He has receipts and documentation to support his expenditures.

Where does the Medical Allowance get reported on the Pastor's W-2?

Vickey's reply

I think if your pastor makes the payments and the church pays nothing on it...it would not be reported on his W-2.

However, you may want to consult a tax professional regarding this matter.

Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!

Click here to post comments

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



Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!





Recommended Resource!

Online classes/courses on how to use QuickBooks Desktop and QB Online for a church! 

Click here for more details!

Use coupon code "FCA" for 10% discount!