The only way to avoid paying taxes on those expenses would be for your church to set up an accountable reimbursement plan according to IRS rules. The EITC has special rules for members of the military, members of the clergy , and taxpayers with certain types of disability income or children with disabilities . Clergy housing allowance. Yes! Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. 417 Earnings for Clergy. If your employee is a member of the clergy, they may be able to claim a deduction from income for their residence when filing a personal income tax and benefits return. However, there are some exceptions, such as traveling evangelists who are independent contractors (self-employed) under the common law. By: Steve Lander. This is also listed in IRS Publication 517, the instructions for the Social Security tax for Clergy and Religious Workers. 505. A licensed, commissioned, or ordained minister is generally the common law employee of the church, denomination, sect, or organization that employs him or her to provide ministerial services. Tax Deductible Expenses. 1. Generally, the housing allowance is reported in box 14 of the W-2 and is not included in boxes 1, 3 or 5. 7 TAX RETURN . This form will help you calculate the expenses you can deduct. Ministers’ Tax Guide. Ministerial tax issues can be complicated. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas. Updated March 06, 2019 . For more information, see chapter 2 of Pub. Although the clergy residence deduction and the utilities share of the benefit can be excluded from income for the purpose of calculating tax deductions and CPP, you still have to report it on your employee’s T4 slip. 3. They may also exclude housing allowances so long as the money is used for home-related expenses, such as utilities and mortgage interest. This includes Rabbis and other ordained clergy. There will now be a single larger standard deduction. If you are a clergy member, use this form to claim the clergy residence deduction. Clergy Tax Return Preparation Guide for 2019 Returns tax return. Because of the special nature of a minister's duties and the many forms of compensation clergy receive, filing taxes can be a confusing affair for religious figures. Clergy qualify for the same deductions … Tax Laws for 2019. Learn about ministers unique tax status and how it impacts their deductions. Standard Deduction & Personal Exemptions. The April 15 date applies whether or not your tax home and your abode are outside the United States and Puerto Rico. In addition to the resource provided by Opus 17: A minister who receives a housing allowance may exclude the allowance from gross income to the extent it's used to pay expenses in providing a home. GuideStone ® wants to serve those who serve the Lord by providing these resources to help answer the most common tax-related issues affecting ministers and churches.. 2020 Ministers’ Tax Guide for 2019 Returns. The penalty for not having health insurance is eliminated starting in 2019. Members of the clergy can claim the same tax deductions as any other taxpayer. Top 7 Minister Tax Deductions: 1. For tax purposes, a minister is a person who is a "duly ordained, commissioned, or licensed minister of a church."