Want to save thousands of dollars on your taxes each year? The housing allowance is one of the best tax saving benefits that exist for pastors. Once aware of these benefits, many churches choose to set up a housing allowance for their pastors. By setting up a housing allowance, you can save thousands of dollars every year in taxes. And with StartCHURCH, you can be sure you are correctly establishing your housing allowance.
A housing allowance is not money paid to a pastor in place or in addition to a salary. Rather, it is a portion of the board-approved salary a minister is already receiving that is excluded from his or her taxable income.
If properly implemented, any minister can exclude home expenses from his or her income. These home expenses range from rent, property taxes, and principal and interest, to appliances, repairs, furniture, and much more, so long as those expenses provide the minister with a home.
Housing allowance benefits:
- Save thousands of dollars on taxes each year
- Exclude home expenses from income
- Banking and major buying purposes
- Self-employment tax reporting
Creating a housing allowance with StartCHURCH is easy. Our specialists will prepare everything you need so you will not have to wonder if you are doing things correctly.
1. Give us a call
Call 770-638-3444 and ask to speak with one of our specialists. They will help you assess your needs and will give you a quote to match.
2. We’ll get to work
Simply send us the information we request and our specialists will fill in the necessary documents. The housing allowance our specialists prepare will include everything from the board meeting minutes to the housing allowance statement.
3. Start saving money
By following the prepared housing allowance, you can ensure that your church correctly implements the housing allowance according to new IRS requirements. Once your housing allowance is approved, you can start saving money!
We will help you get it right
Most ministers are unaware they can establish a housing allowance through their church or ministry. For those that are aware, they often miscalculate their housing allowance. At StartCHURCH, we have helped hundreds of pastors and ministers establish a housing allowance that, in turn, allows them to save thousands of dollars every year when they file for taxes. Whether you own a home or rent, if you are a licensed or ordained minister, you can create a housing allowance and save thousands on taxes.
With a housing allowance in place, a minister’s board of directors can approve up to 100% of his or her salary under a non-taxable status on the pastor’s income taxes. Having a housing allowance also can cover home expenses that range from rent and property taxes to appliances and furniture, home improvements, and much more. As long as your home expenses provide you with a home, they are qualified housing expenses.
Rent and property tax
Whether you own or rent a home, your monthly payments and taxes can be included in the housing allowance program.
Furniture and appliances
Furniture and appliances, like washers and dryers, are expenses that you can put under housing allowance.
Utilities
Water, natural gas, and electricity are several important utilities that can also be included in a housing allowance.
We offer a discount if you purchase your self-employment tax exemption application (Social Security), housing allowance, and compensation agreement together. When you bundle these three services together, you get a $249.00 discount. Below is the pricing breakdown:
| Normal Price | Bundled Price | |||
|---|---|---|---|---|
| Housing Allowance | $199.00 | Housing Allowance | $199.00 | |
| SE Tax Exemption | $399.00 | SE Tax Exemption | $399.00 | |
| Compensation Agreement | $449.00 | Compensation Agreement | $449.00 | |
| Subtotal | $1,047.00 | Subtotal | $1,047.00 | |
| Discount | $0.00 | Discount | -$249.00 | |
| Total | $1,047.00 | Total | $798.00 | |