Housing allowance plus church pays for mortgage

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?

Comments for Housing allowance plus church pays for mortgage

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Jul 23, 2012
Housing allowance and church paid mortgage
by: Anonymous 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.

May 25, 2016
Extra payments
by: Anonymous

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,

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Join in and write your own page! It's easy to do. How? Simply click here to return to Housing Allowance.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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