Housing Allowance for Ministers

Minister’s Housing Allowance

The minister’s housing allowance is a very important tax benefit available to ministers. Section 107 of the Internal Revenue Code allows Ministers for Tax Purposes to exclude some or all of their ministerial income designated by their church or church-related employer as a housing allowance from income for federal income tax purposes.

A church may call someone a minister, but the IRS may not treat that person as a Minister for Tax Purposes — that depends on individual facts and circumstances.

The IRS will consider most ordained ministers to be Ministers for Tax Purposes and therefore eligible for a housing allowance on their ministerial income. Licensed and commissioned ministers are less likely to be treated as Ministers for Tax Purposes by the IRS, but it depends on their individual facts and circumstances. 

If you’re unsure about whether or not you qualify for this exemption, contact Rubio & Son today for expert guidance. 

Schedule your tax and bookkeeping consultation today!