Do NOT Report Housing Allowance Payments in W-2 Box 1 by: Vickey
No. Housing allowance PAYMENTS are NEVER included in Box 1 on your W-2 as it is considered "nontaxable" income and everything reported in Box 1 is taxable.
Housing allowance payments can be reported in Box 14 on your W-2... as it is an "informational" box (for the recipient).
The IRS and SS do not pay any attention to it, so (unless you have opted out of Social Security) you will pay self employment (SS) taxes on those payments by reporting them on a Schedule SE.