Clergy Housing Allowance
Section 107 of the Internal Revenue Code says that a minister’s compensation used to “provide a home” or a home provided to a minister are excluded from federal income taxes. You can purchase our book on the topic, The Pastor’s Wallet Complete Guide to the Clergy Housing Allowance, on Amazon.
Key Articles
- Who is Eligible for the Clergy Housing Allowance?
- What Work is Eligible for the Clergy Housing Allowance?
- How the Clergy Cash or Rental Housing Allowance Works
- How a Parsonage Allowance Works
- What Expenses Qualify for the Minister’s Housing Allowance?
- How to Calculate the Clergy Housing Allowance
- How Much Housing Allowance Can a Pastor Claim?
- Housing Allowance Calculator
Related Blog Posts
What To Do If Your Clergy Housing Allowance Exceeds Your Actual Expenses
You were going to replace your fence, but then you didn’t. You were going to buy that new sofa, but then you didn’t. You were going to move to a more expensive place, but then you didn’t. Life doesn’t always…
How Do You Report Your Clergy Housing Allowance To The IRS?
This is an excerpt from my book, The Pastor’s Wallet Complete Guide to the Clergy Housing Allowance: The church is not required to report the housing allowance to the IRS. Unless a church includes it in an informational section on…
Should You Keep A Mortgage Just For The Housing Allowance & Mortgage Interest Deduction?
Keep your mortgage so you don’t lose your housing allowance and mortgage interest deduction! How many times have you heard that advice? A reader recently asked me about it. Is that really good advice? I know for most people, keeping…
How To Calculate The Clergy Housing Allowance
The following is an excerpt from my book, The Pastor’s Wallet Complete Guide to the Clergy Housing Allowance: Calculating By now you understand who is allowed to take a clergy housing allowance and the process by which you can do…
Can You Use A HELOC To Extend Your Housing Allowance?
Lately, I’ve seen people recommend that pastors who have paid off their mortgages should take out home equity lines of credit (HELOCs) to extend their housing allowance. The idea is that without a mortgage you cannot claim as much in…
Are Government-Employed Chaplains Eligible For The Clergy Housing Allowance?
Lately, I keep getting asked if chaplains at government-owned organizations are eligible for the housing allowance. As I stated in my book on the housing allowance, I was under the impression that government employees other than those in the armed…
What Work Is Eligible For The Clergy Housing Allowance?
This is an excerpt from the book The Pastor’s Wallet Complete Guide to the Clergy Housing Allowance, which is available in paperback and Kindle format on Amazon. Treasury regulations state that, In order to qualify for the exclusion, the home…
Who Is Eligible For The Clergy Housing Allowance?
One of the greatest financial benefits available to pastors is the housing allowance exemption. This comes in two forms: the minister’s cash housing allowance and parsonage allowance. These allow “ministers of the gospel” to exempt all of their housing expenses…
How The Housing Allowance Can Hurt Pastors With Families
The clergy housing allowance is touted as the greatest tax benefit available to pastors. And it really is a great benefit. I learned back in 2019, though, that it can have a dark side. Not a Darth Vader using the…
How Much Housing Allowance Can A Pastor Claim?
One of the benefits of being a pastor is getting to claim an income tax-free housing allowance. Not having to pay income taxes on part of your income can be a great benefit, so it’s one I always recommend that…
Claiming A Minister’s Housing Allowance In Retirement
The following is an excerpt from my book, The Pastor’s Wallet Complete Guide to the Clergy Housing Allowance: The IRS says it’s still possible to claim a housing allowance even after you retire and stop receiving a paycheck. Unfortunately, there…
[Video] Q&A: Do Additional Principal Payments Qualify for the Housing Allowance?
Additional principal payments are qualified expenses for the clergy housing allowance, but they are subject to limitations.