Part-Time youth pastor as contract labor or HA?
My husband is a part-time youth pastor that is paid twice a month as 'contract labor'. Another pastor told us that it would be more beneficial for him to request that the funds be treated as a housing allowance instead. Our tax preparer told us that we saved about $500 on our taxes last year by remaining as contract labor (self-employed) and not claiming housing allowance. Who is correct? I realize it's probably dependent on a few factors, but I would just like to make sure we are doing the most sensible option.