Substantiating actual housing allowance

by Mark
(Tulsa, OK)

In regards to a minister having to substantiate the housing allowance, I have been receiving the allowance check from the ministry, let’s say for 500. I go through the calculations $500 x .9235 x .133 = $61.41 for Self employment taxes. This leaves me with $438.59. My question is, do I have to have receipt substantiating that I used a total of $500 on housing expenses or $438.59 on actual housing expenses and $61.41 on SE Taxes.

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Jan 15, 2013
Substantiating Housing Allowance
by: Anonymous in NC

The amount you must be able to show receipts for is the amount that is excluded from regular gross income--that was preapproved by the church administrative board by the end of 2011 for the tax year 2012. If the board approved $500/mo. and you actually have housing expense receipts for exactly $400 per month, then you need to add back $1200 of unsubstantiated housing expense to regular gross income on your taxes. That $1200 is still subject to Self-employment taxes (that is: income tax and SS taxes).

Apr 13, 2015
Hospital Chaplain
by: Anonymous

I am a Licensed Local Pastor who works as a Chaplain employed by a hospital & contracted to a continual care facility. Do I qualify for a housing credit?

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