Housing Allowance Tag

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...

Only Ministers for Tax Purposes are eligible for a housing allowance on their ministerial earnings. Church custodians, secretaries and ministerial staff who are not Ministers for Tax Purposes are not eligible for a housing allowance. A church may call someone a minister, but the IRS may...

We’re past the halfway point of the year, which means this is an optimal time to check up on pastoral housing allowances, whether you receive one or you set one or more for other qualifying ministers. Specifically, a mid-year review will help determine whether the allowance...

The most important tax benefit available to ministers who own or rent their home is the housing allowance exclusion. To the extent the allowance represents compensation for ministerial services, is used to pay housing expenses, and doesn't exceed the fair rental value of the home, including...