Ten Tax-Related Changes Churches and Clergy Should Understand in 2020
Ten Tax-Related Changes Churches and Clergy Should Understand in 2020
Important information and guidance for tax filing and recording-keeping requirements.

There were several important tax developments in 2019 that affect tax reporting by ministers, church staff, and churches for the upcoming tax-filing season as well as reporting and records-keeping requirements in 2020 and beyond.

The top ten developments are explained in this article as well as the 2020 Church & Clergy Tax Guide, which also further covers 65 other key developments.

1. Status of the housing allowance

For years, the Freedom From Religion Foundation (FFRF), a not-for-profit atheist organization, has attempted to invalidate Section 107(2) of the tax code, the provision permitting clergy to receive an annual housing allowance designated by their employing house of worship—and not pay federal income taxes on the designated amounts. The FFRF argues the tax law is a constitutionally impermissible preference for religion, since leaders of secular nonprofit organizations are not eligible to receive the same benefit.

Log In For Full Access

Interested in becoming a member? Learn more.

Posted: January 6, 2020
View All
from our store
2020 Church & Clergy Tax Guide

2020 Church & Clergy Tax Guide

Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
Smart Money for Church Salaries

Smart Money for Church Salaries

This resource takes you on a journey through real-life case studies to uncover compensation issues and navigate their solutions.
12 Law & Tax Guidelines for New Ministers

12 Law & Tax Guidelines for New Ministers

Essential knowledge to ensure legal and financial clarity and integrity in ministry.
Church Compensation

Church Compensation

Learn the many pieces of employee compensation.

ChurchSalary

ChurchSalary

Let ChurchSalary do the work. Get personalized compensation reports for staff and pastors.