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?

Click here to add your own comments

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.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Designating Housing Allowance.



Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?