Attention all ministers!!! I just came across another ministers W-2 that was improperly prepared. If you are in receipt of a housing allowance, please tally up your household bills (rent, mortgage, utilities, home owners, furniture, lawn maintenance) and approach your church board. By having part of your salary classified as housing allowance, you will escape income tax on this item. Base your housing allowance on your expenditures. This housing allowance, however, is subject to self-employment tax and should be noted in box 14 of form W-2. The housing allowance should not be included in boxes 1, 3, and 5. In fact, there should be no entry for the minster in this box as they should be filing form SE to pick up this tax payment. Stay tuned for more helpful hints and let me know if you need something specifically.Remember, you can do whatever you want, but my way is better!!
Posted on: Sun, 13 Jul 2014 18:19:08 +0000