Clergy Housing Allowance

Determine how much of a designated housing allowance is excludable from federal income tax. Excludable amount is the lesser of three values.

Base salary ($/yr)

Designated housing allowance ($)

Actual housing costs ($)

Fair rental value + utilities ($)

Designated

—

Actual cost

—

Fair rental value

—

Excludable (lesser of three)

—

Taxable portion of allowance

—

Federal taxable income

—

Housing allowance is excluded from federal income tax, but fully subject to SECA (self-employment) tax. Consult a tax pro.