Should the housing allowance be deducted from the amount shown on a 1099?

by Tom Dupler
(Moulton, TX)

One of our pastors is paid on a contract basis. Should the housing allowance be deducted from the amount shown as "other income" in box 3 on the 1099?

Comments for Should the housing allowance be deducted from the amount shown on a 1099?

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Feb 22, 2014
No Place on 1099 for Housing Allowance
by: Vickey

You are correct on the first part. You would deduct the housing allowance from his total compensation; however, you would report the taxable pay for his services in BOX 7 not Box 3 which is for other income of $600 or more required to be reported on Form 1099-MISC that is not reportable in one of the other boxes on the form such as prizes and awards that are not for services performed.

You can then report the housing allowance paid for the year in an official letter from the church.

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