W2 necessary for Housing Allowance?

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PaulaJo
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Joined: Tue Jan 17, 2017 3:26 pm

W2 necessary for Housing Allowance?

Post by PaulaJo »

Is a church required to provide W2s if the only compensation paid to its pastors is a housing allowance? (Our pastors are bi-vocational at this time.) Thanks in advance for your assistance!
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NeilZ
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Location: Dexter NM
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Re: W2 necessary for Housing Allowance?

Post by NeilZ »

PaulaJo wrote:Is a church required to provide W2s if the only compensation paid to its pastors is a housing allowance? (Our pastors are bi-vocational at this time.) Thanks in advance for your assistance!
Yes ... as the Housing Allowance is a taxable item for SECA (self-employment) taxes. It has to be listed in Box 14 as Housing Allowance.

Disclaimer: I am not an accountant, I do books for a church, this type of advice is based on a few years doing such work. It is always better to check with the IRS publications for this information.

IRS Pub 517,
IRS Pub 1828
General Instructions for form W-2
Neil Zampella

Using PC+ since 1999.
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