How can I exclude 35% of wages as a Chaplain and declare it as a housing allowance? The W2 states $100K do I only input $65K? Where do I record the excluded $35K wages?

Forum|Forum|6 years ago
December 6, 2019
1 reply
12 views

I have never had this situation and I don't know how to handle it in the Lacerte program.

Lacerte Tax

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Best answer by TaxGuyBill

You don't.

The church needs to declare it as a Housing Allowance, not you. *IF* they do that, it won't be on the W-2 (except probably for Box 14).

Also be aware that if (1) the actual housing expenses *OR* (2) the Fair Rental Value is LESS than the designated amount, that excess amount is added to wages on Line 7 of Form 1040.

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/ministers-compensation-housing-all...

https://www.irs.gov/publications/p517#en_US_2017_publink100033605

T

TaxGuyBillAnswer

Level 15

You don't.

The church needs to declare it as a Housing Allowance, not you. *IF* they do that, it won't be on the W-2 (except probably for Box 14).

Also be aware that if (1) the actual housing expenses *OR* (2) the Fair Rental Value is LESS than the designated amount, that excess amount is added to wages on Line 7 of Form 1040.

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/ministers-compensation-housing-all...

https://www.irs.gov/publications/p517#en_US_2017_publink100033605

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