Q&A: Housing Allowance
Can a new hire receive a housing allowance for the rest of the year?

Q: We're in the process of hiring a new youth pastor. Can we implement a housing allowance for the rest of 2014?

A: Presuming your new hire meets the criteria to qualify for a housing allowance, the church can set an allowance effective on their first day on the job (presuming they haven't started yet) through the end of the year. If they have already started, the allowance can be set from this day forward (in other words, an allowance can't be set retroactively).

Also, make certain the allowance is used to pay housing expenses and doesn't exceed the fair rental value of the home (furnished, plus utilities). Be sure to put the allowance in writing–perhaps as a part of the official minutes of the committee or board meeting at which the allowance is set.

For more information, see the article Allocating a Housing Allowance and chapter 6 of the 2014 Church & Clergy Tax Guide.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."

Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

Like This Article?

If you enjoyed reading this article, get more like it. Become a Church Law & Tax member today.

Learn more

Already a member? .

Recent Posts
Become a Church Law & Tax Member

ChurchSalary

ChurchSalary

Experience a whole new way to set compensation. Eliminate the guesswork – get access to detailed compensation reports in just minutes.

Dealing with Dangerous People

Dealing with Dangerous People Member access only

This resource goes through safety measures to ward off dangerous individuals from entering your church.
Managing the Legal Risks of Lay Counseling

Managing the Legal Risks of Lay Counseling Member access only

Develop specific policies and procedures that protect your church, lay caregivers, and those who receive care.