How to file for self employed Minister with housing allowance

by Terry
(California)

If the 1099 form does not have a designated spot for housing allowance how is it filed? Example; if I am a part time paid pastor who gets 2000 a month 1500 a month for housing allowance does the 24000 get put on the 1099 or is there another form like W2 that is needed.

vickey’s reply

There is no place on the 1099 to record a housing allowance because housing allowances are part of the minister's compensation package from their employing churches.

Look on page 19 of the IRS's Pub 1828. A housing allowance must be designated by a minister's church he is employed at.

Most of the time a pastor is considered an employee of their church. See this post for more details.

If you are a employee of the church, you would receive a W-2 and the housing allowance can be reported in Box 14 of a W-2 (which is labeled “Other”).

Or, your church can just include the amount of the allowance in a separate letter. (This separate letter should not be sent to the IRS and will not be included or attached to your personal tax return.)

If you are self-employed and the church issues you a 1099, you need to speak to a tax professional regarding reporting your housing allowance.


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