Amounts excluded from income limited my Monthly amount or annual amount?

by Debbie
(Texas )

If a minister spends more in one month than is designated monthly, can it be considered part of the annual amount and still excluded from taxable income?

Example: monthly housing allowance is $1000, and he spends $2000 in Jan but zero in Feb. Can he still deduct the $2000 or must he actually divide an expenditure between calendar months to not exceed the monthly allowance?

Thanks!

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Feb 13, 2021
Monthly amount or annual amount Housing
by: Anonymous -MN

Housing should be an annual amount and should expenses added up at the end of the year.

Feb 16, 2021
kansas
by: Laurie

You just have to have the pastor's declared housing allowance recorded in the corporate minutes or leadership team notes BEFORE the pastor incurs the expenses. You can't go back and retroactively increase a housing allowance.

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