Parsonage usage

by Angela
(Taylorsville, NC)

This is our first year filing taxes as a minister. Our church has a parsonage which we live. They do not give a housing allowance. We live there all utilities paid. How do we file that on our taxes?

Comments for Parsonage usage

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Jan 15, 2014

Parsonage usage
by: Keneb

Following comments

Jan 16, 2014

Tax on using parsonage. . .
by: Anonymous in NC

You will appraise the rental value of the provided parsonage, furnished, with utilities for the year and that amount will be listed on the Self-employment tax form as you will pay Social Security taxes on this amount for the year. There is no Federal and State Income taxes owed for the year on this amount as it would be considered your housing allowance (however, this must be preapproved by the church administration prior to the 2013 tax year).

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Join in and write your own page! It's easy to do. How? Simply click here to return to Clergy Tax Q&A.

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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