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Level 3
February 2, 2022
Solved

Clergy

  • February 2, 2022
  • 1 reply
  • 9 views

Good morning, I have a client who is a clergy. He receives a W2. In the past his housing allowance has not been added in his wages and was put in bx 14. This year his allowance is added in his wages and is still in bx 14. Should he request a new w2 or should this be the correct way? I am not sure, he is my only clergy I have ever had in the last 6 years. I have served him that long and now the change has me lost.

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Best answer by SWD2012

Great, thanks that's what I told them yesterday, but wanted to make sure I was telling them correctly.

1 reply

Level 5
February 2, 2022

He should request a new W2 to avoid future problems.  The "parsonage allowance" should not be included in gross wages but reported separately in box 14.  Remember you need to elect whether or not to subject the parsonage allowance to SE tax.

SWD2012AuthorAnswer
Level 3
February 2, 2022

Great, thanks that's what I told them yesterday, but wanted to make sure I was telling them correctly.