Housing Allowance

Four Tax items every Pastor should check BEFORE the end of the year.

Tax Savings Tips for Pastors, Ministers and other Clergy
1.Clergy Housing Allowance:

Did you use all of your clergy housing allowance for housing expenses,
and do you have the documentation to show it?

2. Professional Ministry Expenses:

Have you documented all your professional ministry expenses?
or, if you have an accountable plan,
have you turned in all your receipts to the church for reimbursement?

3. Quarterly Estimated Tax Payments:

Did you make your quarterly estimated tax payments?
April 15?
June 15?
September 15?
and are you ready for your January 15, 2014 payment?

Some states have December 31, 2013 as… Continue reading

How a Housing Allowance Works on Minister Taxes

Ministers provide an array of services for members of their churches as well as for their communities. Many believe that ministers are under-compensated for the selfless work that they provide and as a result the IRS has given clergymen certain tax-exempt benefits on their taxes including a tax-exempt housing allowance. All expenses for housing including furniture and maintenance can be legally deducted as long as ministers plan accordingly in advance and provide the IRS with detailed and adequate record-keeping. And while minister taxes allow for a housing allowance that is exempt from federal and state income taxes, it is still… Continue reading