not ordained minister but receiving housing allowance, report for taxes?

by Suzanne Mathewson
(Seneca Falls, NY)

My Husband is not ordained but he is the youth pastor at our church and administrator to our very small Christian school.

He receives a housing allowance each month to help ends meet instead of a salary. Are we to report this for taxes? If so, how do we do that? No one seems to know anything! Please help!

vickey's reply

I am sorry, but if he does not qualify as a minister for federal tax purposes, then he does not qualify for a housing allowance.

In that case the income should be reported as compensation on a W-2 or 1099 and appropriate taxes paid.

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Comments for not ordained minister but receiving housing allowance, report for taxes?

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Health Insurance
by: Anonymous

Do you have to show the insurance on the W-2 for him to pay taxes on it? or is it for information only?
Re; Dividing a Minister?s Pay
by: Vickey

Fringe benefits such as health insurance and housing allowances are usually provided by a minster?s employing church.

If he is an employee of the church and it sounds like he would be classified as an employee (see this page on employee or not)...then you would file a W-2 to report his wages. There is a place on the W-2 to put health insurance premiums and you can record the housing allowance in box 14 or separately on a church letter. See this page on filling out a minister?s W-2.

As far as the amount on the housing...you can designated any amount (within reason) for his housing...but he will be limited to the amount he can claim as a housing allowance exclusion. See this section on the housing allowance page "Are the allowance payments exempt from all taxes?"




dividing a minister's pay
by: Anonymous

We have just hired a new minister for a yearly total of $20,000. He has requested that we pay his health premium from total for $2,500. He is then requesting $4,500 in salary and $13,000 in housing.
Can we divide with the salary being so much lower then the $13,000. He is still going to get the total of $20,000 but my understanding is that he only needs a 1099 on the $4,500. Can I even file a 1099 on this or do I need another form due to the medical and housing.

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