Does the way you pay your taxes affect your ability to claim a housing allowance? What determines if you can claim a housing allowance or have to pay self-employment taxes? Do you have to pay taxes on the housing allowance?
Video: Q&A: Can you claim a pastoral housing allowance if you pay taxes as if self-employed?
Amy – expenses to be included in Housing Allowance.
Was helping a pastor friend, directed him to be sure they had UMBRELLA INSURANCE as well as their HOMEOWNER’s INSURANCE.
And the question hit me — how much/what percentage of the Umbrella insurance cost should be included in the Housing Allowance estimate?
Yes, I know Umbrella Insurance is not much, and you may think it is immaterial (and I’m kinda leaning that way).
But now that I brought it up . . .
Rick, that is a really good question that I hadn’t thought of before. I’m not sure how that should be handled. Usually for gray areas like this, I pose the question, “Could I argue this in tax court?” I think it could be easily argued either way. I’m sorry I don’t have a better answer for you!