Can a year end bonus be considered a bonus on housing allowance?

If a pastor is only paid housing allowance but we are able to give him a year end bonus, can that bonus be considered housing or does it have to be considered salary?

Comments for Can a year end bonus be considered a bonus on housing allowance?

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Jan 09, 2018

The Clergy housing allowance is one of the most misunderstood tax laws.
by: Lewis in NC

The answer to your question is no this would be illegal. The housing allowance can be increased during the year,only if foreseen housing expense increases. The bonus you are talking about would be taxable income for this clergy.

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