Housing Allowance Form
Title: Housing Allowance Form
Category: Church Policy Issues
Subject: Housing Allowance
Housing Allowance Form
This information was not authored by the Editor, rather the Editor serves as a contact person. This information was provided by the office of Keith Hamilton of the Georgia Baptist Convention.
Here you will find a form to help you develop and report a minister's housing allowance.
**SAMPLE HOUSING ALLOWANCE EXPENSE FORM FOR MINISTERS
Ministers are permitted to exclude from their church income (for federal and state income tax purposes) a "housing allowance" designated by their employing church, to the extent that the allowance is used to pay housing expenses. To assist the church in designating an appropriate amount, please estimate on this form the housing expenses you expect to pay next year, and then return the form to the church not later than the church''s budget preparation meeting.
CATEGORY OF
ESTIMATED AMOUNT FOR EXPENSE
Down payment on home for a minister buying a home
Mortgage payments of both principal and interest on a
loan to purchase or improve your home for a minister
buying a home
Rental payments for a minister renting a home
Real estate taxes
Property insurance
Utilities (electricity, gas, water, trash pickup,
local telephone charges)
Furnishings and appliances (purchase and repair)
Structural repairs and remodeling
Yard maintenance and improvements
Maintenance items (household cleansers, light
bulbs, pest control, etc.)
Homeowners association dues for a minister
buying his home
Miscellaneous
TOTAL ESTIMATED EXPENSES
The above listed expenses represent a reasonable estimate of my housing expenses for next year. I understand and agree that:
1. The church will not designate a portion of my compensation as a housing allowance until I complete and return this form. Retroactive designations of housing allowances are not legally effective.
2. It is my responsibility to notify the church in the event that these estimates prove to be materially inaccurate during the year. ''
3. The entire housing allowance designated by the church is not necessarily nontaxable. Rather, it is nontaxable, for income tax purposes, only to the extent that it does not exceed my actual housing expenses or the annual rental value of my home (furnished including utilities). Stated differently, the nontaxable amount is the lowest of 3 amounts: (A) my actual housing expenses for the year, (B) the church-designated housing allowance, or (C) the annual rental value of my home (furnished including utilities).
4. My housing allowance exclusion (and, if applicable, the exclusion of the annual rental value of the church owned parsonage) is an exclusion for federal and state income taxes only. I must add the nontaxable amount of my housing allowance as income in reporting my Social Security self-employment taxes on Schedule SE (unless I am exempt from Social Security self-employment taxes).
___________________________________ _______________
Signature of minister Date
I attest that I received this form from the above minister on
_________ ________________________
Date Chairman
This document is intended to provide churches, pastors, and staff with current and accurate information about the subjects covered. However, such information is not intended to be sufficient for dealing with a particular legal problem, and the authors and distributors do not warrant or represent its suitability for such purpose. The reader should not rely upon this document as a substitute for independent legal consultation or IRS instructions. **For more information on this subject and other tax matters, contact Church Financial Services, Georgia Baptist Convention, www.gabaptist.org or Church Ministry Resources 1.800.222.1840 and order The Church & Clergy Tax Guide.
This information was not authored by the Editor, rather the Editor serves as a contact person. This information was provided by the office of Keith Hamilton of the Georgia Baptist Convention.
Here you will find a form to help you develop and report a minister's housing allowance.
**SAMPLE HOUSING ALLOWANCE EXPENSE FORM FOR MINISTERS
Ministers are permitted to exclude from their church income (for federal and state income tax purposes) a "housing allowance" designated by their employing church, to the extent that the allowance is used to pay housing expenses. To assist the church in designating an appropriate amount, please estimate on this form the housing expenses you expect to pay next year, and then return the form to the church not later than the church''s budget preparation meeting.
CATEGORY OF
ESTIMATED AMOUNT FOR EXPENSE
Down payment on home for a minister buying a home
Mortgage payments of both principal and interest on a
loan to purchase or improve your home for a minister
buying a home
Rental payments for a minister renting a home
Real estate taxes
Property insurance
Utilities (electricity, gas, water, trash pickup,
local telephone charges)
Furnishings and appliances (purchase and repair)
Structural repairs and remodeling
Yard maintenance and improvements
Maintenance items (household cleansers, light
bulbs, pest control, etc.)
Homeowners association dues for a minister
buying his home
Miscellaneous
TOTAL ESTIMATED EXPENSES
The above listed expenses represent a reasonable estimate of my housing expenses for next year. I understand and agree that:
1. The church will not designate a portion of my compensation as a housing allowance until I complete and return this form. Retroactive designations of housing allowances are not legally effective.
2. It is my responsibility to notify the church in the event that these estimates prove to be materially inaccurate during the year. ''
3. The entire housing allowance designated by the church is not necessarily nontaxable. Rather, it is nontaxable, for income tax purposes, only to the extent that it does not exceed my actual housing expenses or the annual rental value of my home (furnished including utilities). Stated differently, the nontaxable amount is the lowest of 3 amounts: (A) my actual housing expenses for the year, (B) the church-designated housing allowance, or (C) the annual rental value of my home (furnished including utilities).
4. My housing allowance exclusion (and, if applicable, the exclusion of the annual rental value of the church owned parsonage) is an exclusion for federal and state income taxes only. I must add the nontaxable amount of my housing allowance as income in reporting my Social Security self-employment taxes on Schedule SE (unless I am exempt from Social Security self-employment taxes).
___________________________________ _______________
Signature of minister Date
I attest that I received this form from the above minister on
_________ ________________________
Date Chairman
This document is intended to provide churches, pastors, and staff with current and accurate information about the subjects covered. However, such information is not intended to be sufficient for dealing with a particular legal problem, and the authors and distributors do not warrant or represent its suitability for such purpose. The reader should not rely upon this document as a substitute for independent legal consultation or IRS instructions. **For more information on this subject and other tax matters, contact Church Financial Services, Georgia Baptist Convention, www.gabaptist.org or Church Ministry Resources 1.800.222.1840 and order The Church & Clergy Tax Guide.
