W-2's for Clergy

by anon

I complete the W2 for a Pastor. Can you tell me what I am required to report as Payroll on his w-2?

He gets a housing allowance, car allowance and Pay.

Recently his accountant had us change what was regular pay and what was housing allowance and car allowance(reducing what showed on his w-2 as housing allowance).

What should be included as his income on his w-2? I want to make sure I am complying with the current tax law

2Comments

Additionally for W-2 Question

LLewis in NC

Also,if the housing allowance is paid within the salary to the clergy, it would be excluded before reporting in Box 1 of the W-2.

W-2 for clergy. . .

LLewis in NC

If the clergy is paid an additional cash amount for housing to the salary, it is not included in Box 1 with the salary amount. Whether the car allowance is included in Box 1 with salary depends on the accountable reimbursement policy adopted by the church. If the church keeps a file for car expense containing a properly kept log of clergy travel, then the car allowance can also be excluded from Box 1.