Compensation of Clergy
Overview
Parsonage Allowance
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Excludable from income
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Subject to SE tax
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Fair rental value or rental allowance
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Cannot exceed fair rental value of home
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Can still deduct mortgage interest and home taxes
Related IRC and IRS Publications and Forms
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IRC Sec 107 – Rental Value of Parsonages
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Pub 517 - Clergy
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Pub 1828 - Tax Guide for Churches and Other Religious Organizations (last revised 08/2015)
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Schedule C – Self-Employment Income
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Schedule SE – Self-Employment Tax