Our lesson this week examines the topic of Checking Your Pastor's Housing Allowance. The Executive Summary provides a concise review of the key points. Before we get started, test your knowledge by completing the following quiz.
Last December a church designated a housing allowance for Pastor Craig in the amount of $15,000 for the current year. Pastor Craig incurred a few significant housing expenses during the first half of the year, and he asks the church board if it is possible to increase his housing allowance. The board members do not know how to respond.
Instructions Click on the correct answer for each of the following questions.
Ministers do not pay federal income tax on the amount of their compensation that is designated in advance by their employing church as a housing allowance, to the extent that the allowance is used to pay for housing ...