gdmaof12
Level 1
12-06-2019
06:30 PM
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Thank you,
In regards to the parsonage allowance: our minister is paid a cash compensation of $76,700/year. He lives rent/utilities free in the church's residence. The value of the FMRV is $56,000 (including utilities). So do we subtract $56,000 from the $76,700 and he only pays taxes on $20,700 (W2 box 1) or is it just that he doesn't have to pay taxes on the non-compensation of $56,000, as a non-clergy person would have to and pays taxes on his cash compensation of $76,700 (W2 box 1). He has opted out of SS, SE.
In regards to the original question of the amount in box 16 of the W2 for State income - then the $76,700 is also put in box 16
thank you
In regards to the parsonage allowance: our minister is paid a cash compensation of $76,700/year. He lives rent/utilities free in the church's residence. The value of the FMRV is $56,000 (including utilities). So do we subtract $56,000 from the $76,700 and he only pays taxes on $20,700 (W2 box 1) or is it just that he doesn't have to pay taxes on the non-compensation of $56,000, as a non-clergy person would have to and pays taxes on his cash compensation of $76,700 (W2 box 1). He has opted out of SS, SE.
In regards to the original question of the amount in box 16 of the W2 for State income - then the $76,700 is also put in box 16
thank you
