Most clergy pride themselves on being biblically literate. We realize that biblical literacy is not a one-shot affair; we continue to dedicate time and energy to scriptural study throughout our careers.
In order for clergy to exclude this from their federal income tax, their church must designate the amount of the housing allowance in advance. The designated amount must appear as a resolution approved by the church trustees of finance committee in the formal church records.
Three common types of clergy housing allowances:
Example: If a clergy’s annual compensation is $65,000, and their church has designated a housing allowance of $15,000, they subtract that from their salary, bringing their taxable income for federal income tax purposes to $50,000. They must pay Social Security/Medicare tax on the entire compensation of $65,000.
However, to determine how much to claim for the housing allowance, it must be the smallest amount of these three categories:
Translations of any materials into languages other than English are intended solely as a convenience to the non-English-reading public. We have attempted to provide an accurate translation of the original material in English, but due to the nuances in translating to a foreign language, slight differences may exist.
Las traducciones de cualquier material a idiomas que no sean el inglés son para la conveniencia de aquellos que no leen inglés. Hemos intentado proporcionar una traducción precisa del material original en inglés, pero debido a las diferencias de la traducción a un idioma extranjero, pueden existir ligeras diferencias.
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