The housing allowance designation is not available on the deceased member’s annuity payable to the surviving spouse of the minister. In keeping with the intent of tax regulations, the Board will only consider resolution for … The minister’s housing allowance is a very important tax benefit available to ministers. Here is a sample resolution to use when the church owns the house in which the pastor is living. Signed by: Pastor/Minister:_____ Signed by: Pastor/Minister:_____ Freedom from Religion Foundation lawsuit. Since 2002, the allowance has been capped at the fair rental value of the housing in question. Ministers are an employee for income tax and self- employed for social security. Without the allowance, his tax bill soars to over $2,700. Ordained minister have different taxes. This comes in two forms: the minister’s cash housing allowance and parsonage allowance. Section 107 of the Internal Revenue Code allows "ministers of the gospel" to exclude some or all of their ministerial income designated by their church or church-related employer as a housing allowance from income for federal income tax purposes. These allow “ministers of the gospel” to exempt all of their housing expenses from federal income taxes. The judge in the case — Barbara Crabb, an appointee from President Jimmy Carter’s administration — […] In most cases, the elimination of the housing allowance will result in a significantly higher tax burden on ministers of the gospel. Only a Minister for Tax Purposes, as determined by the IRS, is eligible for a housing allowance on their ministerial earnings. Minister's retirement plans, insurance if unique. SBC is the second largest denomination in the United States in terms of members and largest in terms of number of clergy. Reverend Thornton blogs on … By Bob Allen. A Wisconsin district judge ruled the minister housing allowance unconstitutional. This Covenant is entered into with the prayer that the ministry of this church and the ministry of this minister will bring glory to God and will advance His Kingdom. 2. Minister Housing Allowance Upheld on Appeal On March 15 the 7th Circuit Court of Appeals reversed the district court decision and found that a housing allowance for church clergy does not violate the Constitution’s establishment clause. One of the greatest financial benefits available to pastors is the housing allowance exemption. Southern Baptist entity leaders applauded a federal appeals court decision March 15 upholding the constitutionality of the ministerial housing allowance. If the surviving spouse is clergy and is receiving annuity payments and distributions based on his/her own membership, those payments will have the housing allowance … This ruling affects only western Wisconsin and the order has been stayed (delayed) until all appeals have gone through the courts.