NON- Clergy "Housing Allowance" for Medical Workers in California

by Ted
(Los Angeles, CA)

My employer just informed me that to "save on taxes", I will be paid part of my wages under normal W-2 process,(about 2/3rds) and the rest via a SEPARATE Check called "HOUSING Allowance".

Example:

I am paid $60 dollars an hour; they issue a "paycheck" calculating the taxes on $40 dollars an hour; THEN issue a check for $20 dollars an hour WITHOUT DEDUCTING ANY TAXES!

I work for a REGISTRY of Medical people (ie: RN, Respiratory, etc.) and I have to drive "over 50 miles" to my workplace. I DO NOT stay in lodging overnight.

I am worried about my future Social Security benefits and how I show this "compensation" or income on my tax returns!!

Comments for NON- Clergy "Housing Allowance" for Medical Workers in California

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Non-Clergy Housing Allowance
by: Anonymous in NC

I am not too familiar with Non-Clergy Housing Allowances, but wouldn't you do the same as Clergy and report the $20 amounts as income on the "SE Tax form" and that is where you would pay the social security taxes on that part of your earnings? Call the IRS toll free number and they can help with this question(1-800-829-1040).

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