Housing Allowance Tag

Can you modify housing allowance mid-year? The Housing Allowance can be amended (changed) as often as needed.  We always recommend overestimating when designating a housing allowance.  The goal would be to have enough of a buffer in the designation to end up with unused housing...

As tax season comes to a close and your ministerial staff starts getting their returns, they might want to re-think their housing allowance for 2022. Here’s a quick “how-to” to simplify that process! To satisfy IRS requirements, churches are responsible for 3 key things: Determine Eligibility. Ordained, licensed,...

After reading about the Housing or Parsonage / Manse Allowance, you may be thinking, “if I designate my entire salary as a Housing Allowance, would it all be excluded from federal income taxes?” IRS has already addressed this by limiting the Allowance to the least...

A very common question in Clergy Tax Preparation is “If I designated X as my housing allowance, and I overspend it, what happens?” Many believe that overspending your housing allowance will result in a penalty or getting into trouble with the Internal Revenue Service. This...

If you are new to Ministry, it’s possible that you’ve never heard of self-employment taxes before, much less paid them. One common mistake for new Ministers is filing the 1040 without taking self-employment taxes into account, which can result in a big bill later when...

The minister’s housing allowance is a very important tax benefit available to ministers. Section 107 of the Internal Revenue Code allows Ministers for Tax Purposes to exclude some or all of their ministerial income designated by their church or church-related employer as a housing allowance...

Episcopal News Service - In the latest installment in a nearly decade-long effort to have the Internal Revenue Service’s clergy parsonage exemption declared unconstitutional, the federal Seventh Circuit Court of Appeals has ruled just the opposite. A three-judge panel said March 15 that the principal effect of the...