What should be shown on the board approve document for the housing allowance? Is it by law that the % of the salary for the minister be shown or the actual $ amount that the minister want to put as the housing allowance be shown?
Thank you for your helping in advance.
1Comments
% vs $
SSandi
"in general, churches should avoid designating a set percentage of compensation
as a housing allowance. The better approach is to estimate the anticipated
expenses for the coming year and set the housing allowance accordingly. This
approach minimizes the unfavorable tax consequences discussed above."
from: http://nccumc.org/treasurer/files/housingallowanceqa.pdf
I also like the suggestion that you have the pastor fill out the IRS form so the council has an idea what might actually be needed... I know the amount doesn't have to match but it might help
Prayers
as a housing allowance. The better approach is to estimate the anticipated
expenses for the coming year and set the housing allowance accordingly. This
approach minimizes the unfavorable tax consequences discussed above."
from: http://nccumc.org/treasurer/files/housingallowanceqa.pdf
I also like the suggestion that you have the pastor fill out the IRS form so the council has an idea what might actually be needed... I know the amount doesn't have to match but it might help
Prayers