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

Comments for W-2's for Clergy

Click here to add your own comments

Feb 13, 2015
 W-2 for clergy. . .
by: Lewis 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.
Feb 15, 2015
 Additionally for W-2 Question
by: Lewis 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.

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 Clergy Tax Q&A.



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!

Contact Me!