How do I report my parsonage allowance?
Updated: 1/21/2013
Article ID: IAS10171
If you receive a housing or parsonage allowance you can exclude from gross income the smaller of the amount used to provide or rent a home, the fair market rental value of the home, the amount designated as a rental or housing allowance or an amount that represents reasonable pay for services. If your congregation furnishes housing you may exclude its value from income. You must pay self-employment tax on the allowance or value of the housing.