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...
Board Approval Ministers may exclude a designated portion of their income as a housing allowance from federal income taxes—provided it compensates ministerial services. The church board (or governing body) must determine eligibility and formally approve the allowance...