what about a W-2?

(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.

Comments for what about a W-2?

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Feb 09, 2015

w2 and housing allowances
by: Tammy

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.

Jan 04, 2015

what about a W-2?
by: Anonymous - 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.

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Join in and write your own page! It's easy to do. How? Simply click here to return to Designating Housing Allowance.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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