Housing / Manse / Parsonage Designation
The Regulations require that the housing allowance be designated pursuant to official action taken in advance of such payment by the employing church or other qualified organization. Treas. Reg. § 1.107-1(b).
While this Regulation does not require the designation to be in writing, as a practical matter the designation should always be documented in advance of payment by official action of the qualified organization. This may take different forms, such as by resolution, budget line item, corporate minutes, employment contract, etc.
Do you still have questions? Clergy Financial Resources also offers Pro Advisor support for your housing and other tax questions. This support service is available at a flat rate of $95.00 for each 30-minutes session.
This tax guide looks at the benefits and responsibilities of churches
and religious organizations under the federal tax law.
Source: Publication 1828
Examples of a variety of tax exemptions that clergy may be eligible for.
4361 Religious Exemption Form
Source: Form 4361
A summary of what amounts to enter in each box of a clergy W-2.
Source: Form W2
For those that are having trouble making federal tax payments.
Interest and penalties may still apply.
Source: Form 9465
An example of a parsonage compensation package.
Source: Clergy Tax Law Short-Course