Category Archives: Ministerial Housing Allowance

Court Holds Ministerial Housing Allowance Unconstitutional

In a ruling that came early, but that was expected, Federal District Court Judge Barbara Crabb of Wisconsin struck down a law that allows ministers a tax-free housing allowance. In a decision issued on Thursday, November 21, 2013 – almost … Continue reading

Posted in Chaplains/Evangelists, Internal Revenue Service, Ministerial Housing Allowance, Ministers, Retirees, Tax Information | 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 Expenses, Ministerial Housing Allowance, Ministers, Tax Information | 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 Form W-2, Informational Manuals, Internal Revenue Service, Ministerial Housing Allowance, Ministers, Tax Information | Leave a comment

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

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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

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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

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Court Allows Challenge to Clergy Housing to Go Forward

A recent ruling by a federal judge in the Western District of Wisconsin allowed the challenge to the ministerial housing allowance to move forward to a trial. It is expected that a trial could be scheduled within the next six … Continue reading

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New Video Clips Available from Benefits Board

Our latest project at the Benefits Board is a few short, informative videos we believe will be helpful to church members, pastors, and especially church treasurers. To access the five new videos, simply go to our website, http://www.benefitsboard.com, and click … Continue reading

Posted in Expenses, Form 1099, Form W-2, Informational Manuals, Internal Revenue Service, Ministerial Housing Allowance, Ministers, Pay Roll Taxes, Tax Information | 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 Expenses, Internal Revenue Service, Ministerial Housing Allowance, Ministers, Tax Information | 2 Comments

“Two Home” Housing Allowance Case Reversed

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 Internal Revenue Service, Ministerial Housing Allowance, Ministers, Retirees, Tax Information | Leave a comment