moving allotment

by Amy
(VA)

Our church paid our new minister a moving allotment .. to cover his moving expenses. He was paid directly $7,250 (no receipts requested or accountability of how money spent). Does this need to be reported anywhere (a W-2?). He was actually paid this amount in December 2013, but did not begin pastoral duties or receive a paycheck until January 1, 2014.

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moving
by: Sandi

ouch, non accountable funds are included as income in box 1 of the W-2

the pastor will however be able to claim some deductions on his own tax filing.

if the pastor files their own 1040, you might want to provide them with IRS Pub 521 (also good for council to know)
http://www.irs.gov/pub/irs-pdf/p521.pdf

this pub states what can be deducted.

If you had reimbursed them for anything that was allowed it would have gone in box 12 code P. and non allowed in box 1.

Prayers

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