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Parsonage Allowance

What is 'Parsonage Allowance'

An allowance designated by a church or other organization for its church professionals (clergy) for the expenses of providing and maintaining a home.

Explaining 'Parsonage Allowance'

This is basically a housing allowance for ministers. Parsonage allowance is excluded from gross income, but it is included under a self-employment tax.


Further Reading


Do Religious tax Exemptions Entangle in Violation of the Establishment Clause-The Constitutionality of the Parsonage Allowance Exclusion and the Religious …
heinonline.org [PDF]
… First Amendment status of the federal income tax exclusion for cler- ical housing and parsonage allowances … Amendment status of Texas's sales tax exemp- tion for religious literature: the economic value of … a re- cipient of in-kind housing or of a cash parsonage allowance be a …

Mental health promotion and mental illness prevention: The economic caseMental health promotion and mental illness prevention: The economic case
eprints.lse.ac.uk [PDF]
… First Amendment status of the federal income tax exclusion for cler- ical housing and parsonage allowances … Amendment status of Texas's sales tax exemp- tion for religious literature: the economic value of … a re- cipient of in-kind housing or of a cash parsonage allowance be a …

District Court Rules" Parsonage Allowance" UnconstitutionalDistrict Court Rules" Parsonage Allowance" Unconstitutional
www.questia.com [PDF]
… First Amendment status of the federal income tax exclusion for cler- ical housing and parsonage allowances … Amendment status of Texas's sales tax exemp- tion for religious literature: the economic value of … a re- cipient of in-kind housing or of a cash parsonage allowance be a …

The Constitutionality of the Parsonage AllowanceThe Constitutionality of the Parsonage Allowance
www.questia.com [PDF]
… First Amendment status of the federal income tax exclusion for cler- ical housing and parsonage allowances … Amendment status of Texas's sales tax exemp- tion for religious literature: the economic value of … a re- cipient of in-kind housing or of a cash parsonage allowance be a …

Seventh Circuit Denies Plaintiffs' Standing to Challenge Parsonage Allowance: Group's Leaders Did Not Claim the Income ExemptionSeventh Circuit Denies Plaintiffs' Standing to Challenge Parsonage Allowance: Group's Leaders Did Not Claim the Income Exemption
www.questia.com [PDF]
… First Amendment status of the federal income tax exclusion for cler- ical housing and parsonage allowances … Amendment status of Texas's sales tax exemp- tion for religious literature: the economic value of … a re- cipient of in-kind housing or of a cash parsonage allowance be a …

Second Home Eligible for Parsonage ExclusionSecond Home Eligible for Parsonage Exclusion
www.questia.com [PDF]
… First Amendment status of the federal income tax exclusion for cler- ical housing and parsonage allowances … Amendment status of Texas's sales tax exemp- tion for religious literature: the economic value of … a re- cipient of in-kind housing or of a cash parsonage allowance be a …

The Parsonage Exclusion Under the Endorsement Test: Last Gasp or Second WindThe Parsonage Exclusion Under the Endorsement Test: Last Gasp or Second Wind
heinonline.org [PDF]
… First Amendment status of the federal income tax exclusion for cler- ical housing and parsonage allowances … Amendment status of Texas's sales tax exemp- tion for religious literature: the economic value of … a re- cipient of in-kind housing or of a cash parsonage allowance be a …

Discounting and health benefits: another perspectiveDiscounting and health benefits: another perspective
onlinelibrary.wiley.com [PDF]
… First Amendment status of the federal income tax exclusion for cler- ical housing and parsonage allowances … Amendment status of Texas's sales tax exemp- tion for religious literature: the economic value of … a re- cipient of in-kind housing or of a cash parsonage allowance be a …

Discounting and health benefitsDiscounting and health benefits
onlinelibrary.wiley.com [PDF]
… First Amendment status of the federal income tax exclusion for cler- ical housing and parsonage allowances … Amendment status of Texas's sales tax exemp- tion for religious literature: the economic value of … a re- cipient of in-kind housing or of a cash parsonage allowance be a …



Q&A About Parsonage Allowance


Is the parsonage allowance excluded from self-employment tax?

Yes, it is excluded from self-employment tax.

What is a parsonage allowance?

A parsonage allowance is an allowance designated by a church or other organization for its clergy for the expenses of providing and maintaining a home.

Is the parsonage allowance included in gross income?

No, it is not included in gross income.

Who pays self-employment tax on the parsonage allowance?

The minister pays self-employment tax on the amount of his or her housing allowance that exceeds what he or she can deduct as mortgage interest and real estate taxes.