Book a Consultation

Your church board must officially designate the housing allowance in advance (usually recorded in the board minutes). You can then exclude from taxable income the smallest of these three amounts:

1. The amount your church officially designated.

2. Your actual housing expenses paid during the year.

3. The fair rental value of your home (fully furnished, including appurtenances such as a garage) plus utilities.

 

Any portion of the allowance you receive that exceeds these limits must be reported as taxable income. That’s why good record-keeping is so important!