Substantiating actual housing allowance

by Mark
(Tulsa, OK)

In regards to a minister having to substantiate the housing allowance, I have been receiving the allowance check from the ministry, let’s say for 500. I go through the calculations $500 x .9235 x .133 = $61.41 for Self employment taxes. This leaves me with $438.59. My question is, do I have to have receipt substantiating that I used a total of $500 on housing expenses or $438.59 on actual housing expenses and $61.41 on SE Taxes.

Comments for Substantiating actual housing allowance

Click here to add your own comments

Hospital Chaplain
by: Anonymous

I am a Licensed Local Pastor who works as a Chaplain employed by a hospital & contracted to a continual care facility. Do I qualify for a housing credit?
Substantiating Housing Allowance
by: Anonymous in NC

The amount you must be able to show receipts for is the amount that is excluded from regular gross income--that was preapproved by the church administrative board by the end of 2011 for the tax year 2012. If the board approved $500/mo. and you actually have housing expense receipts for exactly $400 per month, then you need to add back $1200 of unsubstantiated housing expense to regular gross income on your taxes. That $1200 is still subject to Self-employment taxes (that is: income tax and SS taxes).

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Housing Allowance.