W2

by Victoria Arama
(New York)

Our priest has a salary of $7800 per year. He lives in a house that is church' property. Can I add $24000 to his salary and write in W2 form that he received a total salary of $31800. Or housing is not taxable?

Thank you.

Comments for W2

Click here to add your own comments

Feb 21, 2015
Reporting Parsonage FMV is the Minister’s Responsibility
by: Vickey

If minister lives in a church provide parsonage, the minister is not subject to income taxes on the use of the parsonage.

However, the fair rental value of the parsonage is added when figuring his self-employment tax.

The minister is responsible for determining the fair rental value of the parsonage.

Taken from my Housing Allowance ebook:

https://www.freechurchaccounting.com/housing-allowance-ebook-package.html

Or just look under the "Minister Taxes" tab on the left.

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 Minister's W-2.



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