salary or housing expenses

Our minister is paid a very small salary. He wants to claim it all as housing expenses and nothing as salary. Is this allowed? How would it be reported to the IRS?

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Comments for salary or housing expenses

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Oct 10, 2010
Designating a housing allowance
by: Vickey

A minister cannot designate part or all of his salary as a housing allowance.

The employing church is the only one with the authority to designate part or all of a minister's compensation package as a housing allowance.

The church must also make sure the amount they designate as an allowance for housing is determined before it is paid.

It should be included in a board approved resolution and properly documented in the church records.

If he is an employee of the church (most pastors are considered employees of their church), then his salary would be reported on a W-2.

Jan 06, 2011
Same situation
by: Anonymous

Our minister has asked to provide his salary as housing allowance and our church has agreed to this - under all stipulated rules. My question is can he request federal income tax withheld with no salaried income on his W-2. His housing allowance is entered in Box 14 of his W-2.

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