Miniser housing no salary 2018

by Kay

We had a pastor who only received 1 partial housing allowance and no salary before leaving in 2018. Does he still need a W2 form or what since he had no wages and only $1000 for housing.

Comments for Miniser housing no salary 2018

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Jan 20, 2019
Housing Allowance Notification
by: Vickey

You can send him a letter using the church's letterhead and notify him how much was paid him for housing.

It can be as detailed or brief as you want as long as it includes the amount paid throughout the year to the minister. Here is an example of a detailed notification letter:


Dear ________:

Under Section 107 of the Internal Revenue Code, a minister of the gospel is allowed to exclude from gross income (1) the rental value of a home furnished to him or her as part of his or her compensation; or (2) a housing allowance paid to him or her as part of his or her compensation, to the extent used by him or her to rent or provide a home and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities.

You should keep an accurate record of your expenditures to rent or provide a home in order to be able to substantiate any amounts excluded from gross income when filing your federal income tax return. In the event of an audit, ministers receiving a housing allowance will have the responsibility of substantiating the use of such funds. Also, remember that the housing allowance (including the fair rental value of a provided parsonage) must be included as part of your earnings for self-employment tax purposes.

Your total housing allowance paid for the 20___ year was $_______

This letter is for your information only and should not be sent to the IRS or attached to your personal tax return.




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Join in and write your own page! It's easy to do. How? Simply click here to return to IRS Form 941.

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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