Pennsylvania W-2 with 100% Housing

Question:

A pastor receives as his only compensation a cash housing allowance. However, Pennsylvania state income tax statutes do not recognize housing allowances (but PA local tax statutes do!). The church's treasurer registered to file the W-2's online using the Social Security Administration (SSA) website but cannot proceed with a zero in Box 1 (taxable compensation for federal income tax purposes). Can the treasurer file online when Box 1 is zero?

Answer:

Wonderful Pennsylvania exceptions! Few states top PA in complexity for ministers (maybe OH and CA come close). I have not tried it using the SSA site, but some softwares manage to override this problem by placing $.01 in Box 1. ... my one cent worth!

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MinistryCPA - Corey A. Pfaffe, CPA, LLC

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