Question
Clergy and his W-2
New client has moved to VA from CA where he was a minister at a church who provided a W-2 showing housing allowance AND SS and MC tax withheld. As a minister the church should not have withheld SS and MC tax. The church does not want to do a corrected W-2 to move the SS & MC tax to federal income tax so he gets credit for it and they do not want to return the withholding to him because again that requires a corrected W-2. Plus an correction of the W-2 also requires amended 941's. Proseries will not allow housing allowance AND SS & MC withholding. Does anyone have any suggestions as to how we enter that W-2 and prepare his tax returns? Thank you for any replies.
