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.
Clergy are subject to estimated tax payments on a quarterly basis which include federal, social security and state taxes. For example, when you receive clergy income in the first quarter of the year, the taxes are due at the end of that quarter. The year is divided into four payment periods, or due dates, for estimated tax purposes which are listed below. Clergy can also elect to have income taxes withheld from their compensation by means of voluntary withholding agreements which may simplify the budgeting. Payment 1 – April 15th (January through March) Payment 2 – June 15th (April through June) Payment 3 – September 15th (July through September) Payment 4 – January 15th (October through December) .
Source: Form 1040ES
IRS Publication 517 features Social Security and Other Information
for Members of the Clergy and Religious Workers
Source: Publication 517
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
Instructions from the IRS on how to fill out a W-2 form.
This interactive worksheet will help simplify the preparation of
Form W-2 for clergy.
Source: Form W2
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
Complete this form so that your employer can withhold the correct
federal income tax from your pay.
Source: W-4 Form
Form 4868 requests a six month filing extension for your federal
income taxes.
Source: Form 4868
An complete index of IRS tax publications.
Source: IRS
Notify the IRS of a change of address.
Source: Form 8822