THE PASTOR'S HOUSE
The Invaluable Housing Allowance^TM
TIPS

"The housing allowance is a federal income tax exclusion for all eligible clergy.

The housing allowance is exempt from state taxation in ALL states except PA.

"The housing allowance is the biggest tax savings benefit in the tax code available to pastoring clergy."

Tax Tip:  The housing allowance IS subject to SECA (Self Employment Contributions Act) during the active tenure of the pastor.  The allowance must be reported on IRS Form 1040 SE and is taxed at the current year self-employment tax rates of social security and Medicare. 

VIP Tax Tip To Clergy Tax Filers:  If you have not exempted yourself from SECA, (not recommended) be sure to include this form in your annual income tax filings.  This is the only process to update your social security account with the Social Security Administration for retirement and other SSA benefits.

VIP 403b Retirement Savings Tax Tip:  Did You Know?  If you have a 403b you may be able to assign a portion or all of your retirement income as a retirement housing allowance, thereby exempting income that would otherwise be taxable upon withdrawal.  KEY: the retirement resolution MUST be set in place prior to withdrawal. Check with your retirement advisor for specifics.  If he/she is not familiar, refer them to IRS Pub 517 - Social Security and Other Information for Members of the Clergy and Religious Workers-Section "Retired Ministers" at www.irs.gov