Deductions After Leaving RO

by Rich E.

I left my duties as Religious Order in April of this year.

May I deduct expenses incurred for the remainder of the year against my housing allowance?

Comments for Deductions After Leaving RO

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Oct 31, 2014
Housing Allowance Only for Employment Period
by: Vickey

No. You will only be able to count eligible housing expenses during the time of your employment. So assuming you were being paid a housing allowance as of the first of January, you would only be able to claim an exclusion on the lesser of the actual housing expense for approx 4 months, the actual amount paid as a housing allowance for the 4 months, or the fair market rental value plus furnishings and utilities prorated for 4 months.

Nov 01, 2014
I do not mean to offend.
by: Sara

Vickey, should the words "or" or "the least of" be somewhere in your answer. Or, can you actually exclude all three? It can be difficult to be exactly sure what someone is answering because the person may have omitted words, fuzzy sentence structure, syntax issues, etc. But please do not get me wrong, I find your blog very useful and so far do not know what I would do without you and everyone who have taken the time to share so generously with people like me who lack your knowledge and shared with an abundance of patience. Please keep up the good work! From one who respect each and every one of you. I am still learning. Thank you! Thank You! Blessings, one and all! We are a small church and received much information from this site. May God be with you.

Nov 01, 2014
by: Sara

Vickey, I take back the first part of my previous message. There is an "or" and "least of" in your answer. My deepest apologizes!

Nov 01, 2014
Not Worded Clearly
by: Vickey

Thank you Sara for the kind words and encouragement! After looking back over my post, I wasn't very clear...shouldn't try to answer posts while babysitting 3 granddaughters hyped up on sugar:)

You are correct. The income tax exclusion from ministry-related income would be the least of the 3 amounts.

For example, if the actual eligible housing expenses for the time of employment was $4000, and the actual amount paid for a HA was $4800, and the FMV was $4400...the amount claimed as an exclusion would only be $4000 and the remaining $800 would be reported as extra income.

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