Is Housing Allowance a Payment or a Credit?
by Josh
Answer A housing allowance is an amount the church designates as part of a minister’s compensation package. It must be written and approved by the governing body of the employee’s church. Then the minister can exclude the lesser of... 1.The amount actually spent on eligible housing expenses 2.The fair market rental value plus furnishings and utilities 3.The amount officially designated in advance as housing allowance ...from his regular wages. He does not have to pay federal income tax on the lesser amount (check with your state to see if it is excluded). However, that amount does have to be reported on the minister’s IRS Schedule SE form on his personal taxes. If there were any excess housing allowance monies received from the church...over the amount eligible for the exclusion reported on the SE form, you would need to report it as regular income. Hope this helps,  Church Accounting Package www.freechurchaccounting.com Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you! |
Church Accounting Package
- Want to learn some basic church accounting basics?
- Need to know how to fill out a noncash donation receipt?
- How about some tips on setting up a fund accounting system?
Would Highly Recommend. Took the mystery out of Church Accounting for me ...more...
Excellent Book! I highly recommend these books.
They are a necessity, WRITTEN IN PLAIN ENGLISH!
Errol James
Real Eye Opener. Not knowing a thing about church finances, this was a real eye opener and a great way to get us started ...more...
Very Helpful and Detailed I would recommend these books to everyone, I am from Canada and would also recommend it to all of the Canadian people involved in the Finance part of the church. Very helpful and detailed. A must get!! ...more...
more testimonies on bottom of this page...
Free Accounting Spreadsheets
when you...
Subcribe to my free newsletter: Stewardship
Your spreadsheets work wonderful-I have Pastored for 17 years in 3 different churches, and this is the best and easiest finance program for the Church that I have seen yet!
Pastor Tim
Thank you so much for sharing your spreadsheets! I expect the Lord will reward you in heaven for helping those of us that needed some quick help...more...
Darla
Free Spreadsheets I've downloaded several of your spreadsheets and I had no problem with them. They have helped me to keep better records, also they are well structured professionally...
more...
Mary
The free accounting spreadsheets were a life saver. I was able to immediately start using them and they saved me more time than I could ever imagine being able to save! I'm now organized!... more...
Recommended Products
