Part time Pastor is only paid housing allowance.

Pastor is only paid housing allowance as he is only part
time. The parsonage needed repairs, which he agreed to repair.
The church agreed on the housing allowance.
Do I put this amount on a 1099 as no deductions are taken out?

Comments for Part time Pastor is only paid housing allowance.

Click here to add your own comments

Feb 07, 2015
 Part-time pastor only paid housing allowance. . .
by: Lewis in NC

Your part-time pastor is an employee of the church (a contractor) so file a W-2 form instead of a 1099. In Box 1 put the amount of cash you paid him and in Box 14 put the properly approved housing allowance amount. Since no withholdings were made (that is proper for a minister), leave the Federal and State deductions boxes blank.

Feb 09, 2015
 Part-time pastor only paid housing allowance. . .
by: Lewis in NC

Extra clarification: in Box 1 put the amount of cash paid him/her less the approved housing allowance. If this amount is zero then a letter instead of a W-2 would be in order stating the approved housing allowance.
Feb 08, 2017
 housing letter
by: Anonymous

How do you report on tax return from a letter?
How do you do the SE?
Feb 09, 2017
 Reporting Housing Allowance
by: Vickey

Ministers report their housing allowance on a Schedule SE on their personal tax return. (Except for ministers who have opted out of Social Security)

They will report the lesser amount of these 3:

1. The amount actually spent on eligible housing expenses.
2. The fair market rental value plus furnishings and utilities.
3. The amount officially designated in advance as Housing Allowance and paid

The church can report that third amount to the minister either thru a letter or in Box 14 of his W-2

Click here to add your own comments

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



Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?

Recommended Resource!

Online classes/courses on how to use QuickBooks for a church! 

Click here for more details!

Use coupon code "FCA" for 10% discount!