Ministers Housing Allowance


Save Money!

Ministers, you can save money by following the steps for this IRS approved tax break. Hit the link below for all the details.

It is our desire to help you to be and to become more effective in all areas of your ministry. One of the ways in which we could do that is to HELP YOU SAVE MONEY! In getting to know the ministers (pastors, evangelists, staff pastors, credentialed ministers) of our region we have noticed not all ministers are tapping into a very beneficial tax break available to ministers. Its called the "Ministers Housing Allowance". This is an IRS tax designation for ministers only. A Ministers Housing Allowance when taken according to the IRS rules is 100% Tax Free from federal, state, and local taxes. Using this tax benefit helps your family save money, thus helping you to better minister to your family. We challenge you to look into the resources below and start now tapping into this money and tax saving benefit for ministers. If you are currently taking a portion of your income as an housing allowance, it is important to make sure your doing it correctly in order to be in line with IRS rules regarding a ministers housing allowance. Most tax-prepares are not fully versed in this ministers only tax break, so make sure you get all the information you need to get the best benefit for you and your family. Below is a link to a few documents.

  1. Minister’s Housing Allowance Explained. - Make sure you take enough for your housing allowance, and make sure you are not taking things not considered by the IRS as housing.

  2. Minister’s Housing Allowance Form- You can use this digitally or print it off. You have to be able to prove what housing allowance you take and this form can help you track your housing allowance and even help you to know how to come up with a number you can request your church or ministry board to designate in advance.

  3. Sample Text to be included in your church or ministry boards official minutes. In order for a ministers housing allowance to be legal, it MUST be pre-designated by your covering board in writing and placed in the official minutes. You can have them designate high, but can only legally count at the end of the year what you can prove to be acceptable housing allowance. If you pre-desginate to low you can only take up to the number pre-designated in the official minutes. Any unused housing allowance designation must be taken as salary and will be taxed at the normal tax rate. This is super important to keep track of in case you are ever audited.

Take a look at the resources provided below and if you have any questions, or if you would like to receive help or advise on taking a ministers housing allowance feel free to call us at the regional office any time. We are here to serve you!

-Pastor Josh & Melissa