pastor or clergy allowances that are tax free

by Isaac
(Milton, Fl)

What is the maximum amount a clergy can receive as housing allowance?

What is maximum number of for miles and that a clergy does not have to report to the IRS and how much per mile?

Can a church give the pastor allowances for insurance and will it be tax free?

vickey's reply

There is not a maximum amount a clergy can receive as a housing allowance; however, there is a maximum amount you can legally claim as exclusion for the housing allowance on your Schedule is limited to 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.

I do not understand what you are asking in your second question.

Regarding your third question, the only “allowance” that the IRS considers “income tax” free is the housing allowance. Your church can set up a insurance plan that can be tax free if set up properly.

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