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Dear Brass Tax Presentations, I have taken on a church as a client. They have not applied for non-profit status (I know they are deemed a non-profit since they are recognized as a church). The previous person (now deceased) handled their info. They issued the pastor’s W-2 with wages in box 1, but no wages in box 15 for Ca. Shouldn’t the income be reported to the state? Thanks.From Brass Tax Presentations
You are correct that the wages earned by the pastor should be reported to California. California conforms to federal law as it relates to clergy taxation, except that the exclusion for the housing allowance is not limited to the property’s fair market value, and so may be a larger amount. See CA R&TC Section 17131.6.