Minister - Excludable Housing Allowance Worksheet

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This tax worksheet computes the excludable housing allowance for a minister.

A minister's housing allowance (sometimes called a parsonage allowance or a rental allowance) is excludable from gross income for income tax purposes but not for self-employment tax purposes.

If a taxpayer receives as part of their salary (for services as a minister) an amount officially designated as a housing allowance, the taxpayer can exclude from gross income the lesser of the following amounts:

  • the amount actually used to provide or rent a home,
  • the fair market rental value of the home (including furnishings, utilities, garage, etc.),
  • the amount officially designated (in advance of payment) as a housing allowance, or
  • an amount which represents reasonable pay for your services.

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