Page 5: Clergy Income
Skip this page if you received no pay from a church or religious employer during 2026.
You need this page if a church paid you anything — even for part of the year, even with no W-2, even if all of it was housing allowance.
What this page does. It captures your ministerial pay from every church or religious employer: the W-2 figures first, then the make-up of your pay package — salary, housing, allowances and anything the church paid on your behalf. Clergy pay is taxed differently from ordinary wages, so we need the pieces, not just the total.
Before You Begin
Please gather the following documents before completing this page:
- All clergy W-2 forms received for 2026
- Your compensation agreement, call agreement, or employment contract
- Housing allowance resolutions approved by your church board, council, or governing body
- Your final pay stub of the year
- Any documentation showing allowances or benefits provided by the church
Having these documents available will make the page much easier to complete and help prevent errors.
Completing the Page
No Clergy W-2?
If you did not receive a clergy W-2 during 2026, simply check the box at the top of the page.
Please note that you may still have ministry income to report. If so, be sure to complete Page 6 as well.
Social Security Exemption
Check the Taxpayer or Spouse box only if the IRS has officially approved a Form 4361 exemption for that individual.
This exemption is uncommon and requires formal IRS approval.
If you are unsure whether your exemption was approved, please contact us before checking this box.
Clergy W-2 Information
Enter each clergy W-2 on a separate line.
For each W-2, provide:
- Taxpayer or Spouse
- Church or employer name
- Box 1 wages exactly as reported on the W-2
The organizer provides space for multiple W-2s and will automatically calculate the total wages entered.
Compensation Details by Church
The lower section of the page allows you to break down your compensation package for each church or ministry employer.
Enter the name of each church across the top of the columns and work down each column, entering the appropriate amounts.
Clergy Salary
Enter your regular ministerial salary excluding any housing allowance.
Housing Allowance
Enter the housing allowance officially designated by your church.
This amount is reported separately because it receives unique tax treatment for clergy.
Social Security (SECA) Allowance
Many churches reimburse ministers for a portion of their self-employment tax.
This may be called:
- Social Security Allowance
- SECA Allowance
- SECA Offset
- Self-Employment Tax Reimbursement
Enter these amounts on the Social Security line.
Automobile Allowance
Enter any vehicle or mileage allowances paid by the church.
Professional Expense Allowance
Enter any allowances intended to cover ministry-related expenses such as books, conferences, dues, or continuing education.
Cell Phone Allowance
Enter any church-paid or church-reimbursed cell phone allowance.
Health Insurance Allowance
Enter any health insurance reimbursement or allowance paid by the church.
Moving Expenses
If your church paid moving expenses on your behalf, enter those amounts here.
Gifts and Love Offerings
Enter the value of gifts, special offerings, honorariums, appreciation gifts, or other compensation received through the church.
Other Compensation
If you received additional compensation not otherwise listed, use the “Other” fields and briefly describe the payment.
Examples may include:
- Retention bonuses
- Ministry stipends
- Sabbatical payments
- Special project compensation
Each church column will automatically total the amounts entered.
Comments Section
Please use the comments box whenever something needs additional explanation.
Examples include:
- You changed churches during the year
- A housing allowance was designated late
- You received unusual compensation
- You are uncertain how a payment should be reported
- Your compensation arrangement changed during the year
Providing a little extra information can often save time and prevent follow-up questions later.
Common Issues to Watch For
Housing Allowance Is Usually Not Included in Box 1
In most situations, the housing allowance is excluded from Box 1 wages.
Even though it may not appear in Box 1, it should still be entered on the Housing Allowance line of this page.
If your housing allowance is reported in Box 14 of your W-2, enter it only once.
Housing Allowance Must Be Properly Designated
A housing allowance generally must be approved in writing by the church before it is paid.
If the housing allowance was approved after the fact or during the year, please explain the situation in the comments section.
SECA Allowances Are Not Housing Allowances
A Social Security or SECA allowance is taxable compensation.
Although it is intended to help offset self-employment tax, it should not be reported as housing allowance.
Please enter it on the Social Security Allowance line.
Gifts and Love Offerings Often Need to Be Reported
Many ministers receive appreciation gifts, honorariums, or love offerings during the year.
These payments are frequently taxable and should not be overlooked.
If you are unsure whether something should be reported, list it and we will review it together.
Avoid Double Counting
One of the most common mistakes occurs when amounts are entered twice.
For example, an allowance may already be included in Box 1 wages but is also listed separately in your church records.
If you’re unsure whether an amount has already been included, enter it where requested and use the comments section to explain. We will verify the proper treatment.
More Than Four Churches?
If you served more than four churches during the year, don’t worry.
Simply:
- Use the comments section, or
- Attach a separate schedule listing the churches and compensation details
We will include all the information when preparing your return.
When You’re Finished
Before moving on, take a moment to review the information entered for each church and compare it with your W-2s, compensation agreement, and housing allowance documentation.
A complete and accurate compensation breakdown helps us properly prepare your clergy tax return and ensures that important items such as housing allowance and ministerial benefits receive the correct tax treatment.
If you are uncertain about any compensation item, include a note in the comments section and we’ll be happy to help.