Clergy's Housing Allowance on 1099-misc

by Cookie
(Franklin, TN)

I have a SELF-EMPLOYED minister for whom I am completing a 1099-misc.

Where do I enter the amount for his housing allowance?

And where do I enter the amount the church has paid for his health benefits?

And I assume his other compensation ("salary") goes in Box 7, correct?

vickey' reply

If he is self-employed and not considered an employee then he is not eligible for health benefits. See this page. So you would include the health benefits in line 7 with his salary.

Then you would report his housing allowance in a church letterhead statement sent only to the pastor.

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Comments for Clergy's Housing Allowance on 1099-misc

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Housing allowance reported on 1099-Misc in error
by: Anonymous

How do you correct a 1099-Misc reported to IRS in error for Housing allowance
Minister's classification and earnings tax treatment
by: Lisa

Dear Sir or Madam, I have a question. We are a 501C-3 Baptist denomination organization. We hired an ordained pastor to be the director for this organization. His duties include ministry services such as funeral services, wedding, and deliver sermons but not limited to these services. Should we classify him as a common-law employee of this organization and report his wages on a W-2? We like to designate a portion of his income as housing and utility allowance in box 14 if wages reported on a W-2. My question is, should and can we classify him as a self-employed individual and gets a 1099-Misc and report his wages in box 7 without housing allowance?
housing allowance on 1099 for SCorp
by: Anonymous

I am a clergy but also have an SCorp. Can I have my ministry compensation paid to my SCorp name and also claim 50% as housing allowance. I believe this is allowed as long as the church issues a letter stating the compensation was 50/50.
1099 and housing allowance
by: Rick P

I am an ordained minister. for 16+ years, I worked at a large denominational publishing company that allowed me to continue to maintain and claim the ministerial housing allowance.

In the summer of 2012, my job was downsized and I was released. For all of 2013, I worked for the same denominational agency (editorial work in a different dept). I received a 1099 for all the contract editorial work.

Question: How can I go about claiming ministerial housing allowance?
Report Housing Allowance on Schedule SE
by: Vickey

It is reported by the minister on their personal income tax return on Schedule SE.

See IRS Pub 517 and this explanation on their site:

http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Interest,-Dividends,-Other-Types-of-Income/Ministers%27-Compensation-&-Housing-Allowance/Ministers%27-Compensation-&-Housing-Allowance
Housing Allowance on 1099
by: Anonymous

If hosing allowance is not reported on 1099, then how will it be included for social security tax purpose?
A Housing Allowance is NOT Reported Anywhere on a 1099
by: Vickey

If the housing allowance is combined with salary in line 7 on the 1099, is it possible to report the full amount of salary (on line 12 on the 1040) and then back out the housing allowance (on line 21 of the 1040)?
Example: 1099 reflects $30K ($15K salary and $15K housing allowance).

No. If you put what is currently reported on your 1099 in a Schedule C...$30,000 (assuming you had no expenses) and record that value on line 12 then report the housing allowance on line 21...you would then be paying income and self-employment taxes on $45,000. Line 21 is for other income such as excess housing allowance amounts.

Your 1099 needs to corrected as it is wrong. A housing allowance is not recorded anywhere on a 1099.
Clergy's Housing Allowance on 1099-misc
by: Anonymous

If the housing allowance is combined with salary in line 7 on the 1099, is it possible to report the full amount of salary (on line 12 on the 1040) and then back out the housing allowance (on line 21 of the 1040)?
Example: 1099 reflects $30K ($15K salary and $15K housing allowance).
A Church Does Not Report a Housing Allowance to the IRS
by: Vickey

No

A housing allowance is reported to the IRS by the minister on his personal tax return.

A church can provide the required information regarding the housing allowance to the minister by a letter as mentioned above or in Box 14 of his W-2.

Box 14 is an "informational" box that employers use to provide information to their employees. The IRS and Social Security Administration will not record the HA amount from it.
clergy housing allowance
by: Anonymous

Does anything have to be reported to the IRS from the church for the housing allowance after the church gives the minister the a letterhead statement?

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