@Robertgoldmckay wrote:
I am a religious volunteer at the county jail. My supervisor is a full time Chaplain at the jail. Her w2 from the county has the same amounts on lines 1,3, and 5. There is no amount indicated anywhere on the w2 as housing allowance. Are you aware of a way she could deduct her house payments and utilities on her taxes? Thx.
The housing allowance must be declared in advance and in writing by the employer. If the chaplain has a letter from the employer that they have designated a portion of her salary as a housing allowance but they have failed to issue a correct W-2, the first step would be to ask for a corrected W-2. If they refuse, she can attempt to file using a "substitute W-2" with the numbers that should have been used. This would be an audit risk and she would need to back up her position with proof of the housing allowance and an explanation of her adjustments.
If she does not have a written notice that the employer has designated part of her salary as a non-taxable housing allowance, there is no other way for clergy to pay less tax on the value of their housing.
https://www.irs.gov/forms-pubs/about-publication-517
