Ministers W-2

[JON]

auto allowance is not in box 1. Is that OK. Do you just show it in box 14 with the housing allowance?????

[erchess]

I'm answering this mainly to move the post back up

to the top of the list. I am not sure that I am right, but I don't know of anything special about Ministers and Auto Allowances. In other words if it is an Accountable Plan the reimbursements are not taxable but only expenses above the reimbursement would be deductible. If it is a non Accountable Plan the reimbursements go in Box one as taxable wages BUT if the taxpayer Itemizes then the automobile expenses go on F 2106 and Sch A. I hope this helps you and / or I hope someone with greater insight than I have will post so that we all can learn. The really wonderful thing about this board was that we all are ignorant of something and we can all learn and have fun at the same time.

[MAMalody]

to the top of the list. I am not sure that I am right, but I don't know of anything special about Ministers and Auto Allowances. In other words if it is an Accountable Plan the reimbursements are not taxable but only expenses above the reimbursement would be deductible. If it is a non Accountable Plan the reimbursements go in Box one as taxable wages BUT if the taxpayer Itemizes then the automobile expenses go on F 2106 and Sch A. I hope this helps you and / or I hope someone with greater insight than I have will post so that we all can learn. The really wonderful thing about this board was that we all are ignorant of something and we can all learn and have fun at the same time.

This answere is right on the mark. It is also nice to note that the housing allowance is NOT required to be listed on the W-2, however, if you do, then bos 14 is the place to be.

[JON]

Income for the auto

was in box 1. Thanks. I can not believe you have a CHOICE of including housing allowance or not, I guess that means I should question the church on that also.

[thomtax]

Jon

My understanding is that if the housing allowance is on a W2 it is for informational purposes only. Where some part time pastors with a low income want to, the entire amount can be classed as housing allowance and it is not necessary to issue a W2.

LT

[MAMalody]

The church needs to keep in mind, however, that if they do not list it on the W-2 (and I recommend that they don't), they still need to make sure the pastor has a YTD income and expense record so that he will know how much was paid as designated housing.

[scrab6170]

Ministers Housing

The entire housing allowance, including any allowance for utilities, is included in gross income when calculating SE tax. The housing allowance is not subject to income tax.

[JohnH]

scrab6170: Mostly rightt, but keep in mind that part of the housing & utilities allowance MAY be subject to income tax if it isn't all spent, or if it exceeds the Fair Rental Value of the property. Also keep in mind that the amount of salary and H&U alllowance subject to SE tax can be reduced by out-of-pocket ministry-related expenses.

I see this is your first post.
Welcome to the forum & hope you'll participate regularly.