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.

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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:


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

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