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Clergy W-4 Deductions, Adjustments, etc.

New to the IRS's minister tax code, I am wondering what I enter under the "Deductions, Adjustments, and Additional income" section of the W-4. Is this where I enter my housing allowance allocation?

Comments

  • See IRS Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers. It does not discuss Form W-4, but if your housing allowance is properly designated by the church, the church should not include it in your gross income. On that basis, you should not subtract it in determining your W-4 allowances for your salary as it was never included in your salary. If you do that, you will understate your salary for withholding purposes. If the church does not properly designate it, then it is taxable for income tax purposes and should not be an adjustment on Form W-4.

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