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Continuing education for ministry leaders
Weekly Lessons, created and written by Richard R. Hammar, J.D., LL.M., CPA, give you a basic legal overview of essential topics based on staff or volunteer positions within a church.

Previous Lessons

Week of June 23

W-4 Forms

This Week's LessonWeek of July 7

Housing Allowances

Introduction

Our lesson this week examines the topic of Housing Allowances. The Executive Summary provides a concise review of the key points. Before we get started, test your knowledge by completing the following quiz.

Pastor T is the senior pastor of a church. For the current year, his church compensation consists of a salary of $30,000 and a housing allowance of $15,000. During the year, Pastor T incurs housing expenses of $16,000 (mostly mortgage payments, utilities, and furnishings). The "fair rental value" of the home (furnished, plus utilities) is $12,000. How much of the church-designated housing allowance ($15,000) is nontaxable in computing Pastor T's federal income taxes? This question is addressed in this week's lesson.

Weekly Quiz

Instructions Click on the correct answer for each of the following questions.

Executive Summary

Ministers can exclude from their federal income taxes the ...

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