Parsonage Allowance

Parsonage Allowance means:
the rental value of a home or a rental allowance paid to a minister of the gospel, which, for regular income tax purposes, is excluded from gross income to the extent that it is expended for the costs of providing a home. The parsonage allowance is, however, subject to self-employment tax. Former IRC (check if this IRC provision is current here) §107. See also housing allowance. Former IRC (check if this IRC provision is current here) §107.

See also the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

Description and Definition of Parsonage Allowance

A housing allowance for clergy which is designated by the church or other employer organization for the expenses of providing and maintaining a home. A clergyman's designated housing allowance is not included in taxable income to the extent that it is used for qualified expenses. The allowance is subject to social security tax.

Resources

See Also

Further Reading

• Parsonage Allowance in the West's Tax Law Dictionary
• Parsonage Allowance in “A Dictionary of Taxation”