Can a church pay a ministry a full housing allowance (i.e., all related expenses, including mortgage), and also make separate payments that cover the pastor's mortgage payments?
If not, who is liable for any tax or other penalties?
2Comments
Extra payments
AAnonymous
Can extra payments be made by the church on the mortgage - that are not part of the minister's HA or compensation?
Thanks for this resource,
Thanks for this resource,
Housing allowance and church paid mortgage
AAnonymous in NC
Yes, the church can include in the pastor's pay his mortgage payment and approve a full housing allowance for his housing expenses. The pastor is responsible to IRS to show all receipts for housing expenses including mortgage and utilities. The full "board approved" housing allowance would be the two figures you mentioned added together which the church could list on the pastor's W-2 form (box 14) for information purposes to IRS.