Clergy witholding

by Reverend
(Virginia)

I receive clergy pastor pay $7,800 and a second job at the church that is non clergy at $7,400. I also receive 16,000 clergy housing allowance. IRS sent my church a withholding lock-in letter.

My church turned in all of my income to be taxed.

Question is should the housing allowance be excluded from the amount taxed?

Comments for Clergy witholding

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Nov 11, 2016

Housing Allowance Tax
by: Anonymous

Hello there..Your housing allowance should be separate from your salary.

It should not be taxed. But you do need to keep ALL your receipts of expenses that apply to that.

By that I mean, the phone bill, the water bill, the mortgage payment,cable bill, even your dry cleaning and lawn care expenses and furniture purchases. Anything that pertains to your living expenses, etc., etc., etc.

At the end of the year, your tax professional will add up those expenses compared to what the govt. would consider normal living expenses. That's what you would pay tax on should you actually spend less as opposed to what it would cost. I hope that makes sense.

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