Discussion:Clergy W2s
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Kennedystephen (talk|edits) said: | 1 July 2007 |
| I did a search already on this site for this information. I did find some relevant threads, but it wasn't precise enough.
My pastor received a W2 for his salary reported in box 1 and his housing allowance reported in box 14. Is the housing portion of his W-2 taxable? I'm using a web based tax program. It appears to be taxing not only his salary, but also his housing allowance. Is that right? It correctly figured SS. | |
| 1 July 2007 | |
| Working from memory here and no current clergy clients, so please research. Clergy pay income tax on amounts in box 1 and self employment tax on amounts in box 1 and housing allowance. But, nontaxable housing allowance is lowest of actual amount spent on housing, fair rental value of housing as furnished, and amount designated by church governing body as housing allowance in advance. You'll have to ask a couple of questions to get the full story. | |
| July 1, 2007 | |
| No, box 14 is not included. Box 1 is the salary amount, and if he's in the SS system, housing must be added to the SE form. And, you need to compare what was actually spent on housing to box 14. If box 14 is more, there is taxable income. | |
| 1 July 2007 | |
| Suggest you read IRS Pub 517 including the worksheets at the back of the pub. | |
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