Navigating Year-End – Designating a Housing Allowance

Part 1 – Designating a Housing Allowance




While our last four blogs have been about Year-End, there is more to discuss and I want to address individual items in the next few blogs that will address these financial tasks.

A pastor’s HOUSING ALLOWANCE must be documented in writing each year prior to making the first payment in a given calendar year. We have provided a sample Housing Allowance Resolution for your use.

The Pastor’s Housing Allowance is the LESSER of three calculations:

1. Actual housing expenses as documented by the pastor, OR
2. The fair rental value of a similar home in his area that is furnished with utilities paid, OR
3. The official amount designated by the church as a housing allowance.

It is the pastor’s responsibility to provide the amounts for numbers 1 and 2 above. It is the pastor’s responsibility to defend the amount paid as housing allowance.

This is important. Make sure it is done before January payroll.

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