Patriot Software Advisor

Mileage/housing allowance

by Jack

We have two associate pastor's that we are paying $300 a week for mileage. They were paid $1,500...we only began this 5 months ago. I was instructed to put this in the housing allowance on the w2 if...example

After calculating the miles the one pastor went over the $1,500 by $40.50. So he has nothing to report on a w-2 correct?

example explained to me.
1,500 - actual miles spend only $800 so take the $800 from the $1,500 and you get $700 which would go on the w2. But since he went used all of the money and then some there is nothing to report.

Hopefully this is clear. Thank you for your time and patience.


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Mar 05, 2014
by: Sandi

check out:

basically if non-accountable (no reimbursement policy) is used, all paid would go in Box 1 of W-2 as income and the individual would take allowable deductions on their own tax filing.

This is actually easier for the church but be careful of private benefit inurment issues.

and looks like mileage information starts on pg 18:


Mar 05, 2014
Mileage/housing allowance?
by: Lewis in NC

One thing for certain--travel expense would not be added into the housing expense reported in Box 14 of the W-2.

You really have not provided enough information for one to adequately answer the question. Reporting this $1500 for each of the two associate pastors would depend on your "accountable reimbursement planning". A couple of questions for you: (1) is there a written reimbursement plan that covers travel to these and other employees of the church? (2) Has the plan been followed? For example. . . Did the associate pastors turn in a timely travel log with legitimate entries to prove their travel, so it can be used to do the calculations you are referencing in your examples? If these things have not been done, then it would be advisable to put the $1500 in Box 1 of the W-2 with other salary amounts paid them. Also, are you paying $300/wk or $300/mo. for travel?

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