Taxes on Housing Allowance

by Larry Green
(yelm, thurston, united states)

I serve as a certified minister at my local church. My church has been taking our Social Security and Medicare taxes out of my paycheck.


My entire salary of $14,400 has been designated as housing allowance. Should the church be deducting SS and Medicare taxes out of my paycheck?


Vickey's reply

No. They should not be withholding FICA on a minister’s compensation...especially a housing allowance. No taxes are withheld on a HA...not income, Social Security, or Medicare taxes.
Direct them to IRS Pub 517 and Topic 417.


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