HOUSING ALLOWANCE FORM

by Patsy N. Collins
(Round O, S.C, U.S.A.)

I pastor a very small church that pays me a small salary, but they cannot pay for my Housing Allowance.I have paid for my own Home. My former taxpreparer has quit and now I cannot find one who knows how to file my housing allowance. My former preparer did it without a I.R.S. form , but now I am told I must have a certain kind of form. Can you help me with an answer?

God Bless.

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Comments for HOUSING ALLOWANCE FORM

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Aug 03, 2010
Claiming a Housing Allowance Exclusion
by: Vickey

You claim your housing allowance exclusion on an IRS Schedule SE.
However, I am not sure I understand your question. If your church did not designate and pay a housing allowance, you will not be able to claim the exclusion for a housing allowance on a Schedule SE.

Aug 05, 2010
Housing Allowance
by: Patsy Collins

Thank You, Vickey, for your comment.My church is not large enough to supply a parsonage, nor to pay a Housing Allowance. I understand if the church pays the Pastor a Housing Allowance, there can be no deduction, but if not, then the Pastor can deduct what they have to pay for Housing. That has been my experience with Income tax in the past.

Aug 08, 2010
Housing Allowance Part of Salary Package
by: Vickey

Without housing allowance payments from a church, a minister would not have any compensation to claim a housing allowance exclusion from.

So be aware that a housing allowance is usually part of your salary package.

To be able to claim the exclusion, the housing allowance should be included in a board approved resolution and properly documented in the church records.

According to the IRS, if you are a minister and receive as part of your salary (for services as a minister) an amount officially designated as a rental allowance, you can exclude from gross income the amount that is used to provide or rent a home.

The exclusion is limited to the lesser of the fair market rental value of the home (including furnishing, utilities, garage, etc.) the amount officially designated (in advance of payment) as a rental or housing allowance, or the actual amount used to provide a home, and cannot exceed what is reasonable pay for your services.

For more details, read IRS's Pub 517.


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