Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thank you for using Just Answer,There is no limit on the amount of a minister’s salary that a church can designate as a housing allowance. In appropriate situations, a church could designate 100% of a minister’s salary as housing allowance. But remember that the amount the minister can exclude from income taxes is limited. You can report the housing allowance in Box 14 of the W2 it does not go on a 1099MISC.
Okay, thank you. The church has designated that his entire salary from us would be designated as housing allowance. I was just concerned as to the proper way I should handle it at the end of the year! I will report it in the Box 14 on W2 as I have done in the past for our pastor that was not bi-vocational. As far as proper procedures for me reporting to IRS, I do nothing until end of year by sending in copy of his W2, is that correct???
That is correct.
I really enjoyed working with you – please feel free to request me again when you come back to ask another question.
Thank you! Have a good day!
Your positive rating is always thanks enough.
My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.
What happens now?