Mistake in Example

In the example above, it shows the pastor's salary of $25,000 + 2500 + 6000 = $33,500, then the whole thing is put in Box 1. That isn't right. It should be $33,500 less the housing allowance for a total of $24,500.

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Mistake in Example of Pastor's W-2
by: Vickey

In the example above, it shows the pastor's salary of $25,000 + 2500 + 6000 = $33,500, then the whole thing is put in Box 1. That isn't right. It should be $33,500 less the housing allowance for a total of $24,500.

Nope...no mistake :-)

Reread the example.

$25,000 for his salary, $2,500 for his car allowance, and $6,000 for the social security allowance equals $33,500 which all would be reported in Box 1 of his W-2.

Then the $9,000 he is paid for a housing allowance could be either reported in Box 14 (a for-your-information-only box) or his church could have just sent him a letter from the church stating the amount and all other necessary information.

My book on housing allowances has a good example of such a letter:-)

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