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CHURCH ACCOUNTING PACKAGE

Housing Allowance

by Malach
(Nevada USA)

I am a Minister and I passed the IRS 5 point test for dual status (employee & self-employed). But, since i am a stipend pastor my church doesn't give me housing allowance. Does anyone know how can I benefit from the housing allowance if my church doesn't put it in my w-2?
Thanks

Comments for Housing Allowance

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Nov 28, 2012
 Housing allowance
by: Anonymous

Regrettably housing allowance can not be back dated. The church needs to set up a housing allowance for you, this does not mean they have to pay you a certain amount but that you can claim a certain dollar amount of your income for it. Get them IRS Publication 15 series and also 1828 for information on how to set it up. This is a benefit that costs them nothing and should be provided.
Nov 28, 2012
 Housing Allowance Included in Minister's Compensatin Package
by: Vickey

The commenter above is correct. You cannot back date a housing allowance and your church would have to be the one to designate and set up a housing allowance for you.

However, IRS Pub 1828 states "If none of the minister’s salary has been officially
designated as a housing allowance, the full salary
must be included in gross income" which leads me to believe that the housing allowance must be designated as part of the minister's compensation package and be paid from the church.

Also, according to Guidestone, a well-respected financial resource for churches and ministers, "A minister’s housing allowance can be designated for ministerial income only." See this page on Housing Allowance FAQs

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