W2 Box 1 negative when including Housing Allowance and Retirement Contribution
(St. Clairsville, OH)
My denomination allots a housing allowance of 75% of gross income, for which I can fully utilize by making additional house payments toward the mortgage principle.
I would like to max out by 403(b) contribution of $24,500 (over 55 years of age). Between the housing allowance and the 403(b) contributions, W2 boxes 14 and 12b respectively, will bring box 1 down to a negative value. How will the IRS handle this? Will the denomination make adjustments in either the housing allowance or the 403(b) contributions so this situation cannot happen? Thanks so much for your reply!
Click here to post comments
Join in and write your own page! It's easy to do. How? Simply click here to return to
Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!