⏱ Set aside half an hourCLERGY
SKIP THIS PAGE IFYour church designated no housing allowance, you don’t live in a parsonage, and you receive no housing allowance from a retirement plan.
YOU NEED THIS PAGE IFAny part of your pay was designated as housing allowance, you live in a church-owned parsonage, or a denominational retirement plan designated part of your pension as housing.
WHAT THIS PAGE DOESCaptures your housing allowance and what you actually spent on your home. The exclusion can’t be more than your eligible housing costs, so both sides matter.
The housing allowance is one of the most valuable clergy tax benefits. Accurate dates and complete expenses make sure you get the full benefit.
1 · Before you begin
Gather these first. Tick them off as you go.
2 · Completing the page
Work from the top of the organizer page to the bottom. Each section below matches a section on the page.
1No housing allowance?Check the box at the top
If noneIf your church didn’t designate a housing allowance, or you otherwise don’t qualify for the exclusion, check the box at the top of the page.
2Choose your housing situationOwned, rented or parsonage
Pick the one that appliesIf your living arrangement changed during the year, you may need more than one section, and possibly Page 22.
If you owned your homeDates you owned and lived in it, housing allowance designated, the date it was approved, and the home’s current estimated value. The organizer estimates fair rental value.
If you rentedDates you rented and the housing allowance designated.
If you lived in a parsonageDates you lived there, the furnished fair rental value set by the church, utilities the church paid, any parsonage allowance, and whether it was paid on top of salary or out of pay already earned.
3Retired or semi-retired ministersHousing from a denominational plan
EnterRetirement plan name, total distributions for the year, and the portion designated as housing allowance. This is often on Form 1099-R or in a letter from the plan.
4Home expensesWhat you actually spent on your home
Housing paymentsMortgage principal and interest, property taxes, homeowners insurance and PMI. If they’re in one monthly payment, enter the total payment.
RentRent paid during the year, if you rent.
Down payment and closing costsIf you bought a home this year, the down payment and eligible settlement costs.
UtilitiesElectricity, gas, water and sewer, garbage and internet.
Furnishings and appliancesFurniture, beds, tables, chairs, appliances and household furnishings.
Repairs and improvementsRepairs like plumbing, painting and roof repairs; improvements like a new roof, flooring, kitchen remodel or HVAC.
Other housing costsHOA dues, pest control, lawn care, snow removal, security systems and monitoring, cleaning products, light bulbs and household batteries. The organizer totals everything.
CLERGY TIPA housing allowance can’t be backdated. If approved January 1 it can cover the whole year; if approved in March it generally applies from March on. Make sure next year’s is approved in writing before January 1.
3 · Common mistakes that cause delays
The issues we see most often on this page.
Wrong approval dateEnter the date it was actually approved. It generally applies only from that date forward.
Including a second propertyOnly the home you live in counts, not a cabin, vacation home or rental.
Double countingIf you enter the full house payment, don’t also enter the interest and taxes separately.
Forgetting the down paymentA down payment on a home bought this year generally counts as a housing expense.
Including cell phonesA basic home landline may count. Cell phones and long-distance charges generally don’t.
Including personal living costsGroceries, clothing, household help, personal care and entertainment don’t count.
Expecting it to cut SECA taxThe exclusion lowers income tax, but generally not self-employment tax unless you have an approved Form 4361.
Two homes or two churches on one pageUse Page 22 for a second housing situation.
4 · When you’re finished
- Designation amount and approval date entered.
- Housing situation selected and all eligible expenses listed.
- Retirement housing allowance entered, if it applies.
- Continue to Page 18.
Please don’t email tax documents. Email isn’t encrypted. Upload everything together through CyberCabinet when your organizer is complete.