Additional principal payments are qualified expenses for the clergy housing allowance, but they are subject to limitations.
[Video] Q&A: Do Additional Principal Payments Qualify for the Housing Allowance?
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Additional principal payments are qualified expenses for the clergy housing allowance, but they are subject to limitations.
4 Responses
Robert Jones
March 9, 2022Thank you so much for your great videos. They are very helpful!
Would you please make a video answering if it is possible to reduce the housing allowance? It looks like we will no longer need all the allocated amount, but we heard some people saying that it would be illegal to reduce it. What is your advice? Thanks.
Amy
March 13, 2022Robert, I can add that to my list of videos to make and also answer you right here. Yes, you can reduce the housing allowance amount. Unless your church has rules about when you can change your housing allowance, you can do that at any time (the IRS has no restrictions). I don’t see why anyone would think it would be illegal.
D. Ball
September 17, 2023So does this mean if we have an overage in housing allowance that we haven’t spent, we could make an extra mortgage payment before Dec 31st so it’s not counted as income?
Amy
October 1, 2023Yes, as long as it doesn’t exceed the fair market rental value of the home (furnished, with utilities), then you could make an extra mortgage payment with your excess housing allowance. A lot of people do that.