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 … – [PDF]
  • Mental health promotion and mental illness prevention: The economic case – [PDF]
  • District Court Rules" Parsonage Allowance" Unconstitutional – [PDF]
  • The Constitutionality of the Parsonage Allowance – [PDF]
  • Seventh Circuit Denies Plaintiffs' Standing to Challenge Parsonage Allowance: Group's Leaders Did Not Claim the Income Exemption – [PDF]
  • Second Home Eligible for Parsonage Exclusion – [PDF]
  • The Parsonage Exclusion Under the Endorsement Test: Last Gasp or Second Wind – [PDF]
  • Discounting and health benefits: another perspective – [PDF]
  • Discounting and health benefits – [PDF]