Many ministers ask whether they can claim a home office deduction while also benefiting from a clergy housing allowance. The good news is that it is possible to claim both, provided the rules for each are met and the two benefits are coordinated correctly. The IRS...
Deacons can qualify for a housing allowance, but only if they meet the IRS definition of a “minister” for tax purposes. The IRS does not base eligibility on job titles (pastor, priest, bishop, deacon, etc.). Instead, it looks at whether the individual is ordained,...
The Housing Allowance Exclusion permits clergy to set aside a portion of their compensation specifically for housing expenses, shielding that amount from federal income tax. By reducing taxable income, clergy can significantly lower their overall tax burden. Although...