I am bi-vocational. I don't accept any monies from the church. If the church cannot afford to pay out any housing allowance or the pastor refuses to receive monies from the church in order to help it, what can a pastor do to receive a tax benefit for housing allowance?
2Comments
No Compensation Equals No Housing Allowance Benefits
VVickey
The housing allowance represents compensation for ministerial services, so if no compensation is available or taken...there is no tax benefit for a housing allowance.
However, as soon as your church grows to the point of being able to compensate you a little, I would definitely request it to be designated as a housing allowance.
Your church should also have an accountable reimbursement policy in place. That way they could help with business expenses and it would be nontaxable income for you. See more on setting up and maintaining an Accountable Reimbursement Policy on this page: https://www.freechurchaccounting.com/accountablereimbursementpolicy.html
However, as soon as your church grows to the point of being able to compensate you a little, I would definitely request it to be designated as a housing allowance.
Your church should also have an accountable reimbursement policy in place. That way they could help with business expenses and it would be nontaxable income for you. See more on setting up and maintaining an Accountable Reimbursement Policy on this page: https://www.freechurchaccounting.com/accountablereimbursementpolicy.html
Understanding the Housing Allowance. . .
LLewis in NC
Look at the tabs to the left at this website: under Clergy/Minister you need to read Housing Allowance.