Unpaid pastor and parsonage

by Pastor Walt
(Coeburn, Virginia)

I am an unpaid pastor. I do live in the parsonage of the church free. I am disabled and do not file taxes. Because I do not file any federal or state taxes does the church need to keep tract of what the parsonage cost would have been? Our church does not file taxes due to being tax-exempt.

Comments for Unpaid pastor and parsonage

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Oct 20, 2015
Unpaid pastor and parsonage
by: Anonymous in NC

The church would not have to keep up with those cost, but it could be to your advantage to have the church to approve a housing allowance based on the fair rental value of a furnished parsonage they provide. Should they decide some year to give you taxable compensation of any sort for your services, then you could exclude those earnings from taxation using the properly approved housing allowance.

Oct 22, 2015
unpaid pastor and parsonage
by: D Fry

I'm not sure why you don't file a tax return, but the fair market value of the parsonage rental is taxable to you, although most of that can be excluded through a housing allowance. But that does not apply to social security taxes; that would still be due on the housing allowance.

It sounds like you should speak to a tax professional and make sure you are doing everything you should be doing regarding filing and paying taxes. No tax may be due, but there may still be a tax return due.

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