@jeanninecary wrote:
@Opus 17
My husband is a Prison Chaplain employed by the State. They gave him a letter to elect whether to have them deduct the allowance, BUT he did not complete it and turn it in to them; S.S. and Medicare were taken out of his gross pay and there's no allowance shown on his W-2. Everything I've read suggests that in order to take this allowance the amount has to have been determined prior to being paid. However, he is being told that we can still claim this allowance. Do you know if this is true, and if so how? Do I put the amount in Other Deductions?
Your understanding is correct, whatever advice he is being given is wrong. A clergy housing allowance must be declared in advance and in writing. There is no legal or tax method or ability to deduct those expenses from the wages once paid.
I would certainly look into getting that form back and making the election going forward. I can't really think of any downside to having part of his salary declared as a housing allowance.
