Clergy Tax Rules Extend Beyond ChurchesThe Tax Advisor
- Whether an individual qualifies as a minister for tax purposes is determined based on who employs the individual and the duties the individual performs. An individual does not have to work for a church or denomination to be considered a minister but must perform the duties of a minister as specified in the regulations to be treated as a minister.
- Ministers are subject to special tax rules, including eligibility for a tax-free parsonage or housing allowance, being treated as self-employed for Social Security tax purposes, and being exempt from federal income tax withholding.
- If an employee provides the minister a housing allowance, the exclusion is limited to the lesser of the amount designated in advance by the employer as a housing allowance, the fair rental value of the residence, or the actual expenses incurred.
- Tax code,
- tax law,
Citation InformationPaul G. Schloemer. "Clergy Tax Rules Extend Beyond Churches" The Tax Advisor (2009) p. 466 - 470
Available at: http://works.bepress.com/paul-schloemer/5/