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The following comments, tips, and Q\/A were provided by FreeChurchAccounting’s generous readers:<\/p>\n
\nChristmas Bonus<\/b><\/a>\u00a0 \nHousing Allowance<\/b><\/a>\u00a0 \nFull-Time RVer<\/b><\/a>\u00a0 \nHousing Allowance on Paycheck<\/b><\/a>\u00a0 \nInterim Ministry Question<\/b><\/a>\u00a0 \nOther donation from church<\/b><\/a>\u00a0 \n941 Form and W2 reporting for a Pastor<\/b><\/a>\u00a0 \nCan Box 1 include Housing Allowance?<\/b><\/a>\u00a0 \nH&R Block Housing Allowance for pastors<\/b><\/a>\u00a0 \nHousing Allowance and the 941 Form<\/b><\/a>\u00a0 \nDownpayment on new home<\/b><\/a>\u00a0 \nHow Do We Report Insufficient Salary?<\/b><\/a>\u00a0 \n1099 to S Corp instead of indiviual<\/b><\/a>\u00a0 \nHow to report housing for a pastor<\/b><\/a>\u00a0 \nHousing Allowance Approvals<\/b><\/a>\u00a0 \nHousing Allowance Change in July<\/b><\/a>\u00a0 \nMajor Appliance purchases<\/b><\/a>\u00a0 \nHousing Allowance Approval<\/b><\/a>\u00a0 \n2 homes= full salary<\/b><\/a>\u00a0 \nNo house allowance provided<\/b><\/a>\u00a0 \nFacilities director AND Campus Pastor<\/b><\/a>\u00a0 \nHA is not approved for a Mortgage Loan<\/b><\/a>\u00a0 \nNon-salaried ministers and HA<\/b><\/a>\u00a0 \nPart time<\/b><\/a>\u00a0 \nChoices of Laptop & Software<\/b><\/a>\u00a0 \nHousing allowance paid in appliances?<\/b><\/a>\u00a0 \nLicensed Pastor as of June<\/b><\/a>\u00a0 \nOwning a home and living in a manse<\/b><\/a>\u00a0 \nHousing Allowance for office space<\/b><\/a>\u00a0 \nParsonage AND housing allowance?<\/b><\/a>\u00a0 \nHousing expenses in two states<\/b><\/a>\u00a0 \nInfo on w2<\/b><\/a>\u00a0 \nMileage not paid<\/b><\/a>\u00a0 \nMultiple W2s with Housing Allowance?<\/b><\/a>\u00a0 \nPastors paying taxes<\/b><\/a>\u00a0 \nInterim Pastor Temporary Housing<\/b><\/a>\u00a0 \nHousing Allowance<\/b><\/a>\u00a0 \nDeduct the rental value of a home?<\/b><\/a>\u00a0 \nHousing Allowance<\/b><\/a>\u00a0 \nHousing Allowance while on SDI<\/b><\/a>\u00a0 \nGifting a Home to Minister<\/b><\/a>\u00a0 \ntemporary housing<\/b><\/a>\u00a0 \nbuilding a garage<\/b><\/a>\u00a0 \nSeconding<\/b><\/a>\u00a0 \nHousing Allowance Only W-2 Needed?<\/b><\/a>\u00a0 \nWages report on w-2<\/b><\/a>\u00a0 \n2nd home housing allowance<\/b><\/a>\u00a0 \nHousing allowance during leave?<\/b><\/a>\u00a0 \nSeverance paid as housing?<\/b><\/a>\u00a0 \nDonating Rental Expense to my pastor<\/b><\/a>\u00a0 \nSelf employement tax<\/b><\/a>\u00a0 \nHousing Allowance – Shared Residence<\/b><\/a>\u00a0 \n What’s our next step?<\/b><\/a>\u00a0 \nHousing allowance PLUS parsonage<\/b><\/a>\u00a0 \nNew church parsonage allowance<\/b><\/a>\u00a0 \npart-time<\/b><\/a>\u00a0 \nLiving in the Church Parsonage<\/b><\/a>\u00a0 \nCan housing allowance be retroactive<\/b><\/a>\u00a0 \nhousing allowance guidlines<\/b><\/a>\u00a0
Our Pastor’s salary this year has been designated to Housing Allowance. Will his Christmas Bonus go on a W-2 even if it’s only a small sum? Thanks, \u2026<\/p>\n<\/div>\n
Is Housing Allowance included on Form W-2, Box 1 (Wages, Tips, Other Compensation)<\/p>\n<\/div>\n
My denomination designates my pension as “housing allowance” and has an IRS letter confirming that designation.
\nBeginning in June 2020 we live full \u2026<\/p>\n<\/div>\n
I am an ordained minister and part of my compensation plan agreed upon in June 2021 was to move half of my pay to a housing allowance amount.
\nMy paychecks \u2026<\/p>\n<\/div>\n
We hired an interim pastor who resides out of our area. He is requesting that based upon the fact that his employment will be less than 12 months, an \u2026<\/p>\n<\/div>\n
I received other donations from the church that is not a part of my salary, such as Pastor appreciation, vacation pay, birthday etc, from the church. It \u2026<\/p>\n<\/div>\n
Our pastor’s amount earned is broken down by his salary\/insurance\/housing.
\nFor the quarterly 941 form on line 2 for wages do I include his total amount \u2026<\/p>\n<\/div>\n
I have previously read “do not include clergy Housing Allowance in Box 1 taxable income” so I know that’s the recommendation.
\nHowever, if this does \u2026<\/p>\n<\/div>\n
I had to go back and file my 2018 taxes. I am using H&R Block software. The church I pastored did not report my housing allowance on the W-2, which was \u2026<\/p>\n<\/div>\n
We do not provide a salary for our pastor, only a weekly $200.00 housing allowance. Should we include this amount on the 941 Quarterly form?<\/p>\n<\/div>\n
Can a minister who is currently renting while in between having sold their home and purchasing a new one use the down payment made in the purchase of their \u2026<\/p>\n<\/div>\n
We approved our Full-time Senior Pastor for a $36K 2019 Compensation package: $18K Salary\/$18K HA but the church could only afford to pay him a little \u2026<\/p>\n<\/div>\n
We have an interim minister that we paid as a contract employee.
\nI was planning on issuing him a 1099.
\nHe has asked me to issue the 1099 to his \u2026<\/p>\n<\/div>\n
Our pastor does not receive a salary, he turned it down so that his father (our former pastor) would continue to receive his salary.
\nRecently our new \u2026<\/p>\n<\/div>\n
We began paying our pastor a salary on January 1, 2019. He will receive a 1099 for 2019. At the time, we discussed housing allowance but failed to get \u2026<\/p>\n<\/div>\n
Our church has semi-annual business meetings–one in January and one in July. In the July business meeting in 2019, it was recommended that the pastor’s \u2026<\/p>\n<\/div>\n
When an appliance is purchased on a payment plan, when does the expense become part of housing?
\nThe full amount at the time of purchase or the monthly \u2026<\/p>\n<\/div>\n
Is there a process to get approval from the Federal Government before claiming housing allowance? Some sort of form to submit?\n<\/p>\n<\/div>\n
One of the pastor’s at my church owns two homes. One he is currently living in while he remolds the other. So essentially he owns 2 homes. Can his \u2026<\/p>\n<\/div>\n
I am helping our pastor do his taxes for 2017.
\nHe receives no parsonage or allowance for housing.
\nHe owns his house.
\nHe has all his house expenses. \u2026<\/p>\n<\/div>\n
I am interested in learning more about when a pastor is considered a minister as determined by the IRS.
\nI My full-time facilities manager has recently \u2026<\/p>\n<\/div>\n
We were just denied a mortgage loan because our HA has not been effective for 12 months. Apparently this was written into effect in Trump\u2019s new law as \u2026<\/p>\n<\/div>\n
We do not pay our pastors a salary.
\nWe have a designated offering one Sunday every month and whatever amount that offering is will be immediately distributed \u2026<\/p>\n<\/div>\n
How would HA be administered to a part time employee? Are they eligible?
\n(Vickey’s reply): If they are a minister…yes … they would be eligible \u2026<\/p>\n<\/div>\n
Can I get a couple of recommendations of a good laptop brand that is compatible with a church accounting software?
\nI have a windows computer that has \u2026<\/p>\n<\/div>\n
A church buys its paid minister some new appliances for their home, and they are also paid a housing allowance.
\nCan the value be added to housing \u2026<\/p>\n<\/div>\n
I will officially be a licensed pastor as of June (I am in process as we speak and perform duties while finishing the classes but the last class is June.) \u2026<\/p>\n<\/div>\n
I am not sure how to handle housing allowance and the reporting of fair rental value in my case.
\nI own a house 10 minutes from the church but the church \u2026<\/p>\n<\/div>\n
I am currently living in a small apartment, and plan on moving into a mobile home that has an extra bed room that will be used as an office.
\nWould \u2026<\/p>\n<\/div>\n
Can a clergyperson who is provided with a parsonage free of charge also have part of their salary designated as housing allowance and enjoy tax relief \u2026<\/p>\n<\/div>\n
I serve churches in two states (NC and NY) and have housing expenses in each, about 6 months in both states. How should the housing allowance be set up \u2026<\/p>\n<\/div>\n
The business manager of the church withholds federal and state, pays FICA and also wants to include housing allowance.
\nI want to be sure that this \u2026<\/p>\n<\/div>\n
We needed to remove the mileage our pastor was being paid due to the church budget crunch. He would like to get credit for that mileage as his tithe since \u2026<\/p>\n<\/div>\n
Can a pastor have housing allowance on multiple W2’s? Even when not changing churches mid-year.
\nExample: Pastor serves church and as a professor \u2026<\/p>\n<\/div>\n
We are a small church of about 30, our pastor gets 40 percent of what the tithes and offering is but he has refused to pay taxes for 12 years.
\nHe calls \u2026<\/p>\n<\/div>\n
We have an interim pastor on a short term basis…. maybe 3-4 months. He has a permanent home where he is retired about 150 miles from our location. \u2026<\/p>\n<\/div>\n
May I take the housing allowance on income earned from a church controlled school?
\nI receive a salary from the church and a salary from the school. \u2026<\/p>\n<\/div>\n
I qualify for a pastoral housing allowance. If my house is paid for, is there anyway to still deduct the rental value of the home or am I limited to the \u2026<\/p>\n<\/div>\n
Do you report the gross salary on the W-2 and put the Housing Allowance Total in Box 14 or subtract the Housing Allowance from the gross salary?
\nEX. \u2026<\/p>\n<\/div>\n
My husband has brain cancer and wants to go on temporary disability.
\nIs he eligible if he continues to receive a housing allowance of $2,040.00 per \u2026<\/p>\n<\/div>\n
A home was given to our church as a gift from a family member after their parents passed away.
\nCan our church gift this home to our associate pastor? \u2026<\/p>\n<\/div>\n
I am a minister and changed jobs 7 months ago which required a move to another city. I own my own home with a mortgage and maintain utilities at that town. \u2026<\/p>\n<\/div>\n
I own my home out right, no mortgage. Can I use a HA to build a garage?<\/p>\n<\/div>\n
I have been approached by someone employed by a registered not-for-profit ministry to ask if we would “second” him.
\nBy that he means we would officially \u2026<\/p>\n<\/div>\n
I am in charge of the accounting and finances for a very small church plant. If we have properly designated an amount to be paid to our pastor as Housing \u2026<\/p>\n<\/div>\n
Have more questions? Our How To Guide can help!
\nI am a pastor of a small congregation that is paid 4000.00 yearly.
\nFor 2015 1000.00 \u2026<\/p>\n<\/div>\n
I’m seeing that “recent legislation” restricts the housing allowance to the home occupied primarily for purposes of ministry.
\nI don’t see that legislation. \u2026<\/p>\n<\/div>\n
My wife is clergy at a congregation that provides her with a housing allowance. we have purchased a house and deduct the mortgage etc. as a parsonage \u2026<\/p>\n<\/div>\n
Can our pastor who is no longer an employee be paid his severance pay as a housing allowance? Would we report this as a 1099?
\nWe will be paying his \u2026<\/p>\n<\/div>\n
Can I provide housing to my pastor in a home I am still paying the mortgage on, but it is not my primary residence.
\nWould I first donate the payment \u2026<\/p>\n<\/div>\n
If housing allowance is exempt from tax and one can opt out of Social Security, why does the minister pay self employment tax? I read on post that the \u2026<\/p>\n<\/div>\n
If two ministers’ families qualify and purchase a home together, live together and share housing expenses, would both ministers be eligible for a housing \u2026<\/p>\n<\/div>\n
We became part-time pastor of a small, struggling church two years ago. It was agreed at the time that we would not receive a monetary salary until the \u2026<\/p>\n<\/div>\n
Our pastor is living in a church supplied parsonage but just bought a home. He will not move into the home for another month. Can he receive a housing \u2026<\/p>\n<\/div>\n
The Treasury regulations 1.107-(1)(b) require that a housing allowance be established in the prior tax year.
\nFor a new church (and a new minister hire) \u2026<\/p>\n<\/div>\n
Are part-time ministers eligible for parsonage allowance?<\/p>\n<\/div>\n
When a pastor does not want to live in free church parsonage, can the assistant pastor or other church member live in church parsonage for free?<\/p>\n<\/div>\n
My husband was an interim lead pastor 2013-2014.
\nWe really did not think of housing allowance as this was the first time he was an Interim Pastor. \u2026<\/p>\n<\/div>\n
Our Pastor just retired after many years of service with us. About 20 years ago they purchased the parsonage from the church. Then he received a what I \u2026<\/p>\n<\/div>\n