housing allowance paid to or for the pastor

by delsa
(OH)

how to handle: pastor housing expense is paid for him by the church, instead of him receiving a housing allowance?

Comments for housing allowance paid to or for the pastor

Feb 08, 2014

Your church is creating taxable income for the pastor
by: Bill OConnell

Your church is likely creating taxable income for the pastor. Unnecessarily.

Your question does not have sufficient detail to provide a precise answer. However, this appears to be a case where the church is paying personal expenses on behalf of the pastor. This is a condition that creates taxable income AND income that is subject to the Self Employment tax.

This is the worst of all possible tax conditions. I suggest you consult with a qualified CPA who is familiar with clergy compensation and taxation.

My firm may be found at www.wisdomoverwealth.com.

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