Do you include a housing allowance when calculating for Earned Income Credit?
(Bel Air, MD)
Bottom line...Does an ordained minister have to include his housing allowance when calculating for Earned Income Credit?
It seems that even the IRS website gives conflicting info on this topic.
Section 32(c)(2)(A) of the tax code includes both employee compensation and net earnings from self-employment within the definition of earned income.
So using that definition, a housing allowance should be considered earned income and included in calculating your earned income credit...unless you have filed an IRS Form 4361 and have been approved for an exemption from self-employment tax.