Ordanation needed to have a housing allowance

by Roger Penwell
(Crossville TN)

We have a young man who has just entered into a full-time ministry with the church but is not ordained, with no plans to become ordained. Is he still allowed to set aside money to be used as housing allowance. Keeping in mind that we will follow the proper steps with the church accounting and paperwork before the allowance will be issued.

Comments for Ordanation needed to have a housing allowance

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May 19, 2015
Qualifying for HA?
by: Lewis in NC

It is my understanding that to qualify for a church approved HA the minister must be ordained.

May 19, 2015
Minister Determinations
by: vickey

Lewis is correct. In order to be classified a minister for tax purposes, a minister should be ordained, licensed, or commissioned.

To see more factors the IRS utilizes to determine if an individual should be classified as a minister for tax purposes click on the "Minister Taxes" button in the left column; then go to "Clergy Tax" or copy and paste the following address in your browser:

https://www.freechurchaccounting.com/clergytax.html

Nov 03, 2015
commissioned
by: James Friesen

I receive the housing allowance as a full-time missionary with a recognized organization, even though I am NOT ordained or licensed.

As you can see in the previous answer, the third option is being 'commissioned' which is a little less regulated but in my case only required an official commissioning letter by by mission orgnaization with the proper date, etc. for us to have on file.

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