Category Archives: Ministerial Housing Allowance

Audit Tips

Your chances of being audited by the Internal Revenue Service are going up, but only slightly. For example, in 2001 the IRS audited 732,000 individual returns compared to only 618,000 in 2000. However, in 2014 the IRS was expected to … Continue reading

Posted in 03 - March 2015, Chaplains/Evangelists, Charitable Gifts, Form 1099, Form W-2, Informational Manuals, Internal Revenue Service, Ministerial Housing Allowance, Ministers, Pay Roll Taxes, Social Security, Tax Information | Leave a comment

The Earned Income Tax Credit

The question arises as to whether or not a minister’s housing allowance or the fair rental value of the parsonage is earned income for purposes of calculating the earned income tax credit, or EIC. The tax code is clear that … Continue reading

Posted in 02 - February 2015, Form W-2, Informational Manuals, Internal Revenue Service, Ministerial Housing Allowance, Tax Information | Leave a comment

Parsonage / Housing Allowances – IRS’s Perspective

The following article is directly reprinted from the Internal Revenue Service’s Tax Guide for Churches and Religious Organizations (Publication 1828). You may access the entire publication by clicking here: “Generally, a minister’s gross income does not include the fair rental … Continue reading

Posted in 01 - January 2015, Informational Manuals, Internal Revenue Service, Ministerial Housing Allowance, Ministers, Tax Information | Leave a comment

Tax Reporting and the Housing Allowance

Although the IRS instructions for Form W-2 do not require that the “fair rental value” of the parsonage be reported on the W-2, the Board joins the IRS (Instructions for Form W-2) in recommending that Box 14 be used to record this … Continue reading

Posted in 01 - January 2015, Ministerial Housing Allowance, Ministers, Tax Information | Leave a comment

Court Rules Favorably in Ministerial Housing Allowance Case

In a widely anticipated decision, the Seventh Circuit Court of Appeals in Chicago issued a ruling on Nov. 12, 2014 that brought an end to the suit where a lower federal court had declared the ministerial housing allowance unconstitutional. The … Continue reading

Posted in Ministerial Housing Allowance | Leave a comment

Ministerial Housing Allowance Case Advances

The ministerial housing allowance case currently pending before the Seventh Circuit Court of Appeals in Chicago involves a lawsuit filed in the Western District of Wisconsin (Federal District Court). The suit was brought by the Freedom From Religion Foundation (FFRF), … Continue reading

Posted in 04 - April 2014, Ministerial Housing Allowance | Leave a comment

Home Office Deduction vs. Ministerial Housing Allowance

Many ministers have an office in their home. For the costs of a home office to be deductible as a business expense for a taxpayer on his or her tax return, the office must be used exclusively and regularly in … Continue reading

Posted in 03 - March 2014, Internal Revenue Service, Ministerial Housing Allowance, Ministers | Leave a comment

Parsonage / Housing Allowances – IRS’s Perspective

The following article is directly reprinted from the Internal Revenue Service’s Tax Guide for Churches and Religious Organizations (Publication 1828). You may access the entire publication by clicking here: “Generally, a minister’s gross income does not include the fair rental … Continue reading

Posted in Internal Revenue Service, Ministerial Housing Allowance | Leave a comment

No “Two Home” Housing Allowances

In a December 2010 decision, the United States Tax Court, in a case involving a Cleveland, Tennessee minister, took a totally different approach in dealing with a minister’s assertion that he could claim two homes under the ministerial housing allowance … Continue reading

Posted in Ministerial Housing Allowance | Leave a comment

Tax Reporting and the Housing Allowance

Although the IRS instructions for Form W-2 do not require that the “fair rental value” of the parsonage be reported on the W-2, the Board joins the IRS (Instructions to Form W-2) in recommending that Box 14 be used to … Continue reading

Posted in 01 - January 2014, Form W-2, Ministerial Housing Allowance | Leave a comment