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.
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.