Is a minister's housing allowance taxable income?
A licensed, commissioned, or ordained minister may be able to exclude from income a parsonage (home provided) or a housing allowance.
A clergy member who is furnished a parsonage may exclude from gross income the fair rental value of the parsonage, including utilities.
A clergy member who receives a housing allowance may exclude the allowance from gross income to the extent it's used to pay expenses in providing a home. Generally, those expenses include rent, mortgage interest, utilities, and other expenses directly relating to providing a home.
The parsonage or housing allowance is excludable for income tax purposes, but not for self-employment tax purposes.
How do I enter clergy housing allowance from my retirement income?
A clergy member who is furnished a parsonage may exclude from gross income the fair rental value of the parsonage, including utilities.
A clergy member who receives a housing allowance may exclude the allowance from gross income to the extent it's used to pay expenses in providing a home. Generally, those expenses include rent, mortgage interest, utilities, and other expenses directly relating to providing a home.
The parsonage or housing allowance is excludable for income tax purposes, but not for self-employment tax purposes.
How do I enter clergy housing allowance from my retirement income?
