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

Click here to add your own comments

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.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Minister Employee.

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 =)

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.