21 Nov With the New Standard Deduction, Do Ministers Still Have to Track Housing Expenses?
A lot of people used the Standard Deduction in 2018, rather than Itemizing. You may also wonder, as a member of the clergy, “Does taking the standard deduction mean we don’t have to track housing expenses in 2019?”
Unfortunately, the answer is no. Even if you used the Standard Deduction, you must still keep track of housing expenses for the housing allowance.
IRS limits your housing allowance to the lesser of three categories- your designated allowance, the fair rental value of the home, or the actual expenses you paid throughout the year. It is very important to keep track of your expenses and maintain the record so you can support your expenses, in the event that IRS ever examines the return. If you do not keep any record of your housing expenses, IRS could decide that your actual expenses are zero and set the allowance at zero.
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