When it comes to your housing allowance, can you just pick any number you want, or do you think that maybe the IRS might have one or two, maybe even three things to say about it? Hi there, Stacy Potts here with roguecastor.com, a site dedicated to helping pastors and churches understand the complicated and confusing world of pastoral compensation and church finance issues. I'll be putting out new videos like this one every so often, so make sure you hit that subscribe button down below. And if you like this video, I would really appreciate you hitting the like or share button as well. Now, can a pastor choose any amount he wants to be his housing allowance out of his total salary, or do you think the IRS might have a thing or two to say about it? Well, the answer to this question is yes and no. Technically, a pastor can choose any amount he wants, even up to 100 percent of his total cash compensation, and designate that amount as his housing allowance. And for some part-time and bi-vocational pastors out there, that might be absolutely correct. The IRS may not have any issue with that based on how much money you receive. But practically speaking, for the vast majority of pastors, the answer is going to be no. You see, when you go to file your taxes at the end of the year, the IRS is going to apply a three-fold test to your housing allowance. You have to select the least of these three numbers: number one, the amount you actually designate as your housing allowance; number two, the amount you actually spend on housing-related expenses; or number three, an amount equal to the fair market rental value of your home fully furnished with...
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Clergy tax deductions 2024 Form: What You Should Know
Information about items on Form IT-196, visit Form T1212 — Deduction for Housing Benefits, Part A, of the Federal Income Tax.
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Video instructions and help with filling out and completing Clergy tax deductions 2024
