(Maryland)
So, if I have a bi-vocational pastor who we only paid $500/month, all of which we designated as housing, do I issue him a W-2 with the $6000 listed in box H, even though the earned income box will be $0? I have searched the internet and the IRS website and can't find any discussion of this. Thanks.
2Comments
w2 and housing allowances
TTammy
No W-2 for housing allowances. A housing allowance is between the church & the pastor. The reporting of is between the pastor and the IRS-the church should not get involved at all. It is not the churches job to inform the IRS of housing allowance.
what about a W-2?
AAnonymous - MN
The pay roll package I use creates a W2 just as you described.
It is the responsibility of the Pastor to account for his housing and if it does not use all of the $6000, it must be added back into his income. Therefor it is important that you issue a W2 indicating the amount of his housing for his information and the IRS.
It is the responsibility of the Pastor to account for his housing and if it does not use all of the $6000, it must be added back into his income. Therefor it is important that you issue a W2 indicating the amount of his housing for his information and the IRS.