Is Housing Allowance a Payment or a Credit?

by Josh
(Portland)

Is a housing allowance something actually paid by the church to the minister and then credited to your taxes, or is it simply an amount you get to take off your taxable income?

1Comments

Housing Allowance Must be Paid to Claim

VVickey

A housing allowance is an exclusion...however, remember that a minister can only exclude the lesser of...

1.The amount actually spent on eligible housing expenses
2.The fair market rental value plus furnishings and utilities
3.The amount officially designated in advance as housing allowance

...from his [ministry-related income].

No ministry-related income...no housing allowance exclusion...even if the church designates a HA.