Can an ordained minister not receiving income from a ministry still claim housing allowance

by Penny
(Richmond, VA)

My husband is an ordained ministry with a full-time non-ministry job, and also has a ministry to incarcerated inmates.

He performs ministry part-time as he is able and has kept up with all ministry credentialing, but doesn't receive a formal income from a ministry (only donations).

Can he still claim the housing allowance he's taken for years since he is not currently being paid by a ministry, but is still an ordained minister?

1Comments

Housing Allowance MUST be Designated by Their Church or Church-related Employer

VVickey

Section 107 of the Internal Revenue Code allows Ministers to exclude all or a portion of their compensation from a church or church related employer as a housing allowance.

HOWEVER, that amount has to be designated in advance and approved by the minister’s employing church.

With what you have described, I do not believe your husband's compensation would qualify as a housing allowance.

Please consult a tax professional for your particular situation for additional and legal guidance.